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Home My WebLink AboutAgenda Police Pension 080912Agenda City of Palm Beach Gardens Police Officers' Pension Fund MEETING OF AUGUST 9, 2012 LOCATION: City Council Chambers' 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 9 AM 1. Call Meeting To Order 2. Roll Call: • Lt. Jay Spencer, Chairman • David Pierson, Secretary • Brad Seidensticker, Trustee • Greg Mull, Trustee • Marc Glass, Trustee 3. Investment Manager Report - ICC Capital (Steve Stack) 4. Investment Consultant Report - Thistle Asset Consulting (John McCann) 5. Attorney Report - Law Offices of Perry & Jensen (Bonni Jensen) • Review and Discussion of Proposed Pension Plan Amendment (drafted by City) 6. Administrator Report - Resource Centers (Audrey Ross) • Retainer Fee Increase Letter 7. Approval of Minutes • January 26, 2012 Regular Meeting • April 19, 2012 Regular Meeting • May 10, 2012 Special Meeting 8. Disbursements 9. Benefit Approvals 10. Financial Statements 11. Other Business • 6/30/2012 Salem Trust Class Action Report 12. Public Comments 13. Adjourn Next Meeting Date: Thursday October 18, 2012 @ 9AM PLEASE NOTE: Should any interested party seek to appeal any decision of this Board with respect to any matter considered at such meeting or hearing, s /he will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting should contact the The Pension Resource Center, LLC no later than four days prior to the meeting. PALM BEACH GARDENS POLICE PENSION FUND Benefit Approvals I Meeting of August 9, 2012 APPLICATION TO EXIT THE DROP DON AMMON DATE OF BIRTH DATE OF HIRE DROP ENTRY DATE DATE OF TERMINATION FORM OF BENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT GEORGE BETSCHA DATE OF BIRTH DATE OF HIRE DROP ENTRY DATE DATE OF TERMINATION FORM OF BENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT 10/29/1956 10/31/1990 12/31/2009 05/11/2012 10 YEAR CERTAIN $5,083.63 $ 237.50 07/21/1951 09/12/1990 09/30/2010 09/30/2012 100% J &S $5,204.00 $ 250.00 APPLICATION FOR DISTRIBUTION OF DROP ACCOUNT (Due to Retirement) DON AMMON DATE OF RETIREMENT 05/11/2012 DATE OF BIRTH 10/29/1956 TYPE OF DISTRIBUTION PARTIAL LUMP SUM -CASH TOTAL GROSS DISTRIBUTION $25,000.00 TAX WITHHOLDING (20 %) $ 5,000.00 TOTAL NET DISTRIBUTION $20,000.00 TYPE OF DISTRIBUTION MONTHLY TOTAL GROSS DISTRIBUTION $700.00 TAX WITHHOLDING (20 %) $140.00 TOTAL NET DISTRIBUTION $560.00 CURRET DROP ACCOUNT BALANCE $147,845.57 APPROVED: , CHAIRMAN ,SECRETARY DATE THE RESOURCE CENTERS, LLC 4360 Northlake Boulevard, Suite 206 ❖ Palm Beach Gardens, FL 33410 Phone (561) 624 -3277 • +e Fax (561) 624 -3278 • *e www.RESOURCECENTERS.COM May 1, 2012 TO: Board of Trustees Palm Beach Gardens Police Pension Fund FROM: Audrey Ross, Administrators Resource Centers, LLC RE: Retainer Fee Increase Dear Trustees: As time passes, we must periodically review the fee that we charge to each plan in relation to our operating costs and the services we provide. We understand that the current economic environment makes any discussion of fees very difficult, and we do our best to deliver value back to you and to the members of your plan through the services that we provide. We also invest substantially in our organization and our personnel, through such items as our systems and our annual SSAE -16 Audit, to insure that we continue to deliver the highest level of competence and experience through the work that we do. At the same time, some of our employees have not had pay increases now for as many as six years, and other components of our overhead such as insurance, rent, and simple employee benefits continue to rise. Finally, we work primarily in the public sector where items such as fees are part of the public record; we must therefore charge all of our clients equitably for our services. We respectfully ask the Board to approve the increase to our retainer fee as requested. We have remained true to our commitment to deliver value to the Board since 2006. Our initial agreement with the plan included a three year rate guarantee, but we chose not to address fees following the expiration of the initial guarantee period. We have found more recently that our clients would rather consider smaller annual increases than larger increases every several years. We therefore ask the Board to grant a one -time adjustment to our current fee from $2,275 to $2,575 at your special meeting to approve the valuation. Thereafter, we propose an annual cola increase each January 1 of 3.5 %. We do not anticipate any additional adjustments or changes to our fees unless inflation should dramatically increase, we substantially modify or increase the services we provide to your Board as we might mutually agree, or legislative mandates or accounting standards dramatically impact our workload. As we noted previously, we have maintained our commitment to charge reasonable fees now for 6 years. We truly appreciate the relationship that we have developed with you and the members of your plan over the years. We ask that you approve the fee request at your next meeting. We will be happy to answer any questions that you might have regarding the proposed increase in the meantime. We also look forward to continuing to demonstrate to you our commitment to excellence and service for many years to come. Sincerely, lV J. cott aur, Managing Partner Resource Centers, LLC 7 L Denise McNeill, Partner Resource Centers, LLC Resource Centers LLC — Pension Resource Center LLC — Financial Resource Center LLC City of Palm Beach Gardens Police Officers' 11 Pension Fund Minutes of the Meeting Held January 26, 2012 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 9:07 AM by Jay Spencer in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT Jay Spencer, Chair David Pierson, Secretary Brad Seidensticker, Trustee Marc Glass, Trustee Wayne Sidey, Trustee OTHERS PRESENT Audrey Ross (Resource Centers) Bonni Jensen (Law Offices of Perry & Jensen) Donna Kramer (PBG Clerk's Office) Steve Stack (ICC Capital Management) John McCann (Thistle Asset Consulting) Steve Palmquist (GRS) Jim Burdick (CBH) Mr. Spencer introduced and welcomed new Trustee Marc Glass to the Board. He is the new Trustee that was elected to fill Mr. Barone's vacancy. Discussion with City Regarding the Collective Bargaining Agreement Changes to the Pension Plan & Chapter 185 Money Ms. Ross stated that the City had asked the Pension Board to reschedule their January meeting to today so that the City's Finance Director could be present to review and discuss some of the pension changes. It was noted that the board did comply with the City's request and rescheduled their meeting, although no one from the City ever attended. Ms. Jensen explained that the Police Officers did not pass the CBA the other day, and the Board discussed what would happen from here. It was explained that more than likely this issue will be taken up in a Special Masters. Ms. Jensen reviewed the process of going though a Special Masters and explained what the City "theoretically" can impose and what they cannot. The board discussed the different options that the City has put on the table in regards to negotiations, such as a start /stop plan, merging both the Police & Fire pension funds together, opting out of the Chapter 185/175 Plans, or moving into the FRS. The Plans Actuary, Mr. Palmquist noted that he has done a good amount of cost studies for the Plan and parties involved during this process and he commented that closing out the Plan will cost the City more up front and will take about 15 -20 years for the City to start seeing some savings. Also the Plan's unfunded liability would have to be paid off before they can close the Plan. Lastly Mr. Palmquist stated that benefits can be changed going forward, but any benefits that have already been earned cannot be taken away. Mr. Sidey asked what the motive could be behind opting out of the Chapter 185 Plan since that is free money the Plan and City receives each year. Ms. Jensen commented that the main motivation for the City would be to have the local control over the pension plans and then to eventually move into the FRS. Ultimately we will have to wait for the outcome of the bargaining units to see what changes will actually be made. Minutes 1- 26- 12.doc Page 1 of 4 INVESTMENT MANAGER REPORT ICC Capital Management — Presented by Steve Stack Mr. Stack briefly reviewed his firm and what service they provide to the board as an update for new Trustee Mr. Glass. ICC Capital runs the Fund's fixed income and equity portfolios. For the quarter ending December 31, 2011 the fixed income portfolio had a great quarter and outperformed the benchmark at 1.54% net of fees versus 1.12 %. The Equity side also had a strong quarter and outperformed the benchmark net of fees at 11.34% versus 10.61 %. Mr. Stack reviewed the current market environment and commented that ICC has started to trade some U.S. Treasuries which has benefited their portfolio. They also increased their credit quality by moving more into AAA and AA and out of BB, BBB and A. Also they are taking more risk in duration and are also trying to keep the barbell effect in the portfolio. Mr. Stack explained that they are starting to see more value in the Equities, which have already started to rally and if inflation does hit then ICC might get hurt because they long duration by lowering the average credit quality. INVESTMENT CONSULTANT REPORT Thistle Asset Consulting — Presented by John McCann Mr. McCann stated that he has revised the Plan's Investment Policy Guidelines to reflect an allocation to Real Estate and to also include their new Real Estate Manger, American Realty. MOTION: Mr. Seidensticker made a motion to approve and accept the revised Investment Policy Guidelines as presented by the Plan's Consultant to include an allocation to the new Real Estate Manager, American Realty. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5 -0. Mr. McCann reviewed the total funds performance for the quarter ending December 31, 2011. The total fund net of fees was slightly behind the benchmark at 7.34% versus 7.70 %, which is also the same for their fiscal year to date. For the 1 year, the fund is also behind at 1.59% versus 2.46 %. Mr. McCann stated that all managers outperformed for the quarter with the exception of the Rhumbline S &P 500 account, which fell shy of the index at 11.80% versus 11.82 %. He noted that the fund was behind for the quarter net of fees only, and not gross. PRESENTATION OF THE SEPTEMBER 30, 2012 AUDITED FINANCIAL STATEMENTS Cherry, Bekeart & Holland (CBH) — Presented by Jim Burdick Mr. Burdick introduced himself to the new Trustee. He commented that the report here today is the draft report of the Audit and they are still waiting on a couple more confirmations before they can release the final copy. Although Mr. Burdick stated that he does not think any of the numbers or material will change in the final revision. Mr. Burdick reported that there were no material weaknesses found while performing the audit and they have issued an unqualified opinion, which is the highest level of opinion that can be issued. He reviewed the Plan's internal controls which are well Minutes 1- 26- 12.doc Page 2 of 4 documented in the report, and also the Plan's assets which are tracked on a market value. Mr. Burdick noted that that the Plan does not have any liquid or unvalued assets in the portfolio. Lastly he commented that there were no disagreements or difficulties with any party involved in the audit process while performing the audit. The Trustee's tabled the approval of the Audit until all information and confirmations are received in case anything does change. ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen reviewed the memo regarding the task force on public employee disability presumptions. She explained that the Division of Retirement created a task force and they were to review the disability presumptions pursuant to SB 1128. Ms. Jensen stated that the task force could not reach a consensus on the findings and recommendations, although they did agree that a wellness program would help reduce the cost of group health and worker's compensation claims. She noted that no action is needed at this time. Ms. Jensen notified the Board that she did receive the American Realty documents and she reviewed some important materials that needed to be disclosed to the Trustees' before investing. The Trustees reviewed Ms. Jensen's memo that outlined the important information that needed to be disclosed and they commented that they understood the rules and regulations behind it all. MOTION: Mr. Sidey made a motion to approve and accept the agreements with American Realty. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5 -0. Ms. Jensen briefly explained the changes that were proposed in HB 1499 which would affect the Plan's funded ratio. She commented that this bill was filed on 1/18/2012, but has not been approved. Ms. Jensen will update the Board as more information becomes available. Ms. Jensen reviewed the revised and final statement of policy regarding expenses associated with public records, class actions, and domestic relations orders. MOTION: Mr. Sidey made a motion to approve and accept the revised statement of policy regarding expenses associated with public records, class actions, and domestic relations orders as presented. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5 -0. ADMINISTRATOR REPORT Resource Centers — Presented by Audrey Ross Ms. Ross presented the board with the 2012 fiduciary liability insurance renewal quote. She commented that the premium this year has decreased by $484 from last year. MOTION: Mr. Seidensticker made a motion bind coverage for the 2012 Fiduciary Liability Insurance Renewal. Minutes 1- 26 -12.dc Page 3 of 4 SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 5 -0. Ms. Ross stated that she has the Salem Trust authorized signors form with her today that needed to be updated and executed since we have a new Trustee on the Board. MINUTES MOTION: Mr. Pierson made a motion to approve the minutes from the October 20, 2011 regular meeting. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 5 -0. DISBURSEMENTS APPROVALS MOTION: Mr. Pierson made a motion to approve the disbursements. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 4 -0. BENEFIT APPROVALS MOTION: Mr. Sidey made a motion to approve the application to enter the DROP for Robert Odell, the application to exit the DROP for Martin Greenberg, and the application for distribution from DROP account (due to retirement) for Martin Greenberg. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5 -0. FINANCIAL STATEMENTS The board reviewed and discussed the financial statements that were provided through December 2011. The board received and filed the financial statements through June 2011. OLD BUSINESS Mr. Spencer stated that Mr. Smith has contact him again regarding his situation. Mr. Smith was one of the members who opted out of the pension plan years ago. He now wants to "repay" back his contributions for the time that he was not in the pension plan. Ms. Jensen explained that he cannot just pay back the amount that he would have contributed into the Pension plan as if he never opted out the plan, but rather he would have to buyback and purchase his previous time with the City to be credited for it. Mr. Spencer directed Ms. Jensen to send a letter to Mr. Smith explaining this. OTHER BUSINESS The Trustees stated that they would like to get Mr. Barone a little gift to thank him for his time and commitment that he serve on the pension board for so many years. Minutes 1- 26- 12.do, Page 4 of 4 MOTION: Mr. Sidey made a motion to authorize the administrator to purchase a $100 gift card to a restaurant of the Board choice for former Trustee Jules Barone. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5 -0. PUBLIC COMMENTS N/A AJOURN There being no further business, and the future meetings are scheduled for the 3rd Thursday of the first month proceeding the quarter. The next regular meeting was scheduled for Thursday April 19, 2012 at 9AM; the Trustees officially adjourned the meeting at 11:22AM. Respectfully submitted, DAVID PIERSON, Secretary Minutes 1- 26- 12.doc Page 5 of 4 City of Palm Beach Gardens Police Officers' 11 Pension Fund Minutes of the Meeting Held April 19, 2012 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 9:09 AM by Jay Spencer in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT OTHERS PRESENT Jay Spencer, Chair Audrey Ross (Resource Centers) David Pierson, Secretary Bonni Jensen (Law Offices of Perry & Jensen) Brad Seidensticker, Trustee Donna Kramer (PBG Clerk's Office) Marc Glass, Trustee Steve Stack (ICC Capital Management) Wayne Sidey, Trustee John McCann (Thistle Asset Consulting) INVESTMENT CONSULTANT REPORT Thistle Asset Consulting — Presented by John McCann Mr. McCann noted that he will not have the June 30, 2012 quarterly report available for the July 12th meeting because there systems are not updated until the 15th of each month. The board discussed rescheduling the July meeting date until later into the month or into the beginning of the following month so that Mr. McCann will have a full quarterly report available. The Trustees agreed on rescheduling the July 12, 2012 meeting to August 9, 2012 at 9AM. Mr. McCann reviewed the report for the quarter ending March 31, 2012. He noted that we are inline with the policy according to the Plan's compliance checklist and we are also in compliance with the scrutinized company policy as well. The total fund net of fees was slightly behind the index for the quarter at 8.23% versus 8.25 %, but for the fiscal year to date they are up 16.17 %. The total Equities had a great quarter and were up 12.88% versus 12.72 %, and the total fixed income was behind the benchmark at .06% versus .25 %. Mr. McCann noted that we funded the new Real Estate Manager, American Realty on April 2, 2012; therefore their performance will be reflected on next quarters report. He reviewed the risk versus reward chart and commented that the Plan takes about 3% less risk then the policy which means this is an unvolatile fund and has been this way for a long time period. Mr. McCann stated that he thinks this Fund has room to take on more risk and get more return as well. The Trustees discussed the future markets and all the talk about the big blow up of bonds. Mr. McCann explained that since this is an actively managed fund we will have a better chance of knowing when the rates are going to increase. ICC keeps low durations on their bonds and we probably will not see any inflation within the next couple of years. Therefore, Mr. McCann is recommending to the board to take the income from Real Estate each quarter and not to have it automatically reinvested back into the fund. Minutes 4- 19- 12.doc Page 1 of 4 INVESTMENT MANAGER REPORT ICC Capital Management — Presented by Steve Stack Mr. Stack discussed the current market environment and commented that it has been hard on the fixed income market because there is not a lot to buy out there at this time. Their main concern is to make sure they are keeping their portfolios diversified during this time. For the quarter ending March 31, 2012 the fixed income portfolio was behind the benchmark net of fees at -.07% versus .30 %. Mr. Stack stated that the yields keep getting lower so therefore duration will start to open up. ICC thinks that money will then start moving from bonds to stocks because of the difference in returns that they have been seeing. He noted that going forward ICC will continue with their same approach by selling of Treasuries and keeping the barbell effect in the portfolio. The board discussed what AAA rated bonds remain out there these days because all bonds seem to be getting downgraded to sell off their debt. Mr. Stack explained that ICC contracts out a company to review their ratings on a daily basis so they see any and all changes on a constant basis. Lastly Mr. Stack reviewed the equity side of the portfolio which had better performance for the quarter but still lagged the benchmark net of fees at 12.68% versus 14.69 %. ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen stated that she has the revised GRS fee agreement with her today that needs to be executed. She reminded the Trustees that they had accepted a fee increase from GRS due to the additional information that they are required to disclosure in the annual Actuarial Valuation reports as a requirement by the Division of Retirement. Ms. Jensen reviewed the memo regarding the Palm Beach County Ethics Opinion. She explained and clarified some of the new rules and regulations that Trustees must abide by. Ms. Jensen notified that there were no pension State laws that were passed during the recent Legislative session that would affect the Chapter 175/185 Plans. Ms. Jensen updated the Board on George Smith's appeal for buyback which was denied by the Board at the last meeting. She commented that she mailed Mr. Smith a letter explaining the Boards denial and she has not received a response back. ADMINISTRATOR REPORT Resource Centers — Presented by Audrey Ross Ms. Ross stated that we will be holding a special meeting on May 10, 2012 to review and approve the September 30, 2012 Actuarial Valuation Report. jautlj� � MOTION: Mr. Sidey made a motion to approve the minutes from the December 8, 2011 special meeting. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5 -0. DISBURSEMENTS APPROVALS MOTION: Mr. Seidensticker made a motion to approve the disbursements. Minutes 4- 19- 12.do(- Page 2 of 4 SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 5 -0. BENEFIT APPROVALS MOTION: Mr. Glass made a motion to approve the application to enter the DROP for John Boyle. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 5 -0. MOTION: Mr. Glass made a motion to approve the application for distribution of DROP account (May 15, 2012) for Martin Greenberg. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 5 -0. MOTION: Mr. Seidensticker made a motion to approve the application to exit the DROP for Wayne Sidey. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4 -0. *note Mr. Sidey did note vote* FINANCIAL STATEMENTS The board reviewed and discussed the financial statements that were provided through February 2012. The board received and filed the financial statements through February 2012. OLD BUSINESS Ms. Ross stated that the final copy of the Audit was issued and circulated out to all the Trustees in between meetings. She commented that the final copy did not change from the draft copy that was presented to the board back in January 2012. Therefore the board still needs to approve the September 30, 2012 Audited Financial Statements. MOTION: Mr. Seidensticker made a motion to approve and accept the September 30, 2012 Audited Financial Statements as prepared by the Plan's Auditor, Cherry, Bekeart & Holland. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5 -0. OTHER BUSINESS Minutes 4- 19- 12.doc Page 3 of 4 Mr. Sidey announced that he is exiting the DROP and separating service therefore he can no longer serve on the Board. Mr. Sidey shared his experience on the board and the Trustees thanked him for his time and commitment and wished him luck. Ms. Ross stated that she will start the election process to fill Mr. Sidey's seat as soon as possible. PUBLIC COMMENTS N/A A]OURN There being no further business, and the future meetings are scheduled for the 3rd Thursday of the first month proceeding the quarter. The next special meeting is scheduled for Thursday May 10, 2012 at 9AM and the next regular meeting was scheduled for Thursday August 9, 2012 at 9AM; the Trustees officially adjourned the meeting at 10:32AM. Respectfully submitted, DAVID PIERSON, Secretary Minutes 4- 19- 12.doc Page 4 of 4 City of Palm Beach Gardens Police Officers' Pension Fund Minutes of the SPECIAL Meeting Held May 10, 2012 The special meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 9:902 AM by Wayne Sidey in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT OTHERS PRESENT Jay Spencer, Chair Audrey Ross (Resource Centers) David Pierson, Secretary Bonni Jensen (Law Offices of Perry & Jensen) Brad Seidensticker, Trustee Steve Palmquist (Gabriel, Roeder, Smith) Marc Glass, Trustee PRESENTATION OF THE SEPTEMBER 30, 2012 ACTUARIAL VALUATION REPORT Gabriel, Roeder, Smith & Company (GRS) — Presented by Steve Palmquist Mr. Palmquist apologized for the delay in issuing the report this year. He explained that there was a large unexpected amount of members that entered the DROP during the fiscal year, which made the percentage of covered payroll decrease because those members that entered the DROP are no longer contributing to the pension fund. Due to the percentage of covered payroll being less than expected, this also increased the Plan's unfunded liability payment. Ms. Jensen asked for discussion purposes, whether the DROP monies should be listed separately from the Plan's assets. Mr. Palmquist stated that he didn't think the DROP monies needed to be separated out into their own category because they are still listed under the Plan's assets until the member withdraws their money. Also the payroll percentage should increase once more members exit the DROP and there are new hires. Mr. Palmquist reported that the City's contribution rate for the next fiscal year decreased dollar wise to $3,720,000 from $3,785,539 that was contributed this fiscal year. He stated that the Plan did experience a net gain of $718,288 this year which was due to the lack of salary increases. Also the funded ratio increase to 60.5% this year from 58.8% last year. Mr. Palmquist reviewed the Plan changes that were made 5 years ago and also recently. He noted that the changes the board made 5 years ago are starting to be reflected and they have impacted the portfolio in a positive way. Also the board recently lowered their assumed rate of return on a continuous basis until they reach 6.5 %. Mr. Palmquist commented that the board has done everything they needed to do regarding making positive changes to the Plan. Now we need to let those changes ride out because you can see today how the changes they made years back have benefited the fund. MOTION: Mr. Seidensticker made a motion to approve and accept the September 30, 2012 Actuarial Valuation Report as presented by the Plan's Actuary, GRS. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4 -0. Minutes 5 -10 -12 (SM).doc Page 1 of 2 ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen reminded the Trustees' that their annual Form 1 Disclosures are due July 1, 2012. She reviewed her memo that outlined the new requirements that the Trustees' must do disclose. Ms. Jensen reviewed the new State and Tax Law updates. The new updates revise the retire /rehire clause, and also states that a dissolution of marriage automatically changes a retires' beneficiary and /or joint annuitant. MOTION: Mr. Seidensticker made a motion to direct Ms. Bonni Jensen to draft a letter to the City staff requesting a meeting with the Pension Board. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 3 -0. PUBLIC COMMENTS N/A AJOURN There being no further business, and the future meetings are scheduled for the 3rd Thursday of the first month proceeding the quarter. The next regular meeting is scheduled for Thursday August 9, 2012 at 9AM; the Trustees officially adjourned the meeting at 10:52PM. Respectfully submitted, DAVID PIERSON, Secretary Minutes 5 -10 -12 (SM).doc Page 2 of 2 PALM BEACH GARDENS POLICE PENSION FUND Investment Review Period Ending June 30, 2012 [CC Capital Maiiageiwizt, lnc. -- - -____ ------------- _..__.. PALM BEACH GARDENS POLICE PENSION FUND Table of Contents Period Ending June 30, 2012 ICC Capital Managemetit, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Review Quarter Ending June 30, 2012 [CC Capital Matiagerrrent, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Performance Report Quarter Ending June 30, 2012 1CC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Total Return Summary Quarter Ending June 30, 2012 TOTAL RETURN 1.83% 1 3.49% 1 33.37% ANNUALIZED TOTAL RETURN 1 5.93% [CC Capital ManagemeW, hic. • $151393,577 $17,260,205 $1,625,387 Starting Value Ending Valise $16,073,089 $16,073,089 $16,073,089 Difference $679,512 ($1,187,117) $14,447,702 Net Contributions/ (Withdrawals) $396,962 ($1,713,957) $6,888,605 GaW(Loss) front Investments $282,549 $526,840 $7,559,097 TOTAL RETURN 1.83% 1 3.49% 1 33.37% ANNUALIZED TOTAL RETURN 1 5.93% [CC Capital ManagemeW, hic. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Allocation at Market Quarter Ending June 30, 2012 Asset Allocation: 0%100 (Mkt) Market Valise CASH /EQUIVS as of 031302 10.4% FIXED INCOME 89.6% Market Vali[e CASH /EQUIVS as of 06130112 20.2% FIXED INCOME 79.8% Mkt Value Mkt Value % Mkt Value Mkt Value as of 03/31/12 as of 03/31/12 as of 06/30/12 as of 06/30/12 CasIVE uivs $1,599,708 10.4% $3,245,000 —t--79.8% 20.2% Fixed $13,793,870 89.6% $12,828,089 Total $15,393,577 100.0% $16,073,089 1 100.0% [CC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Performance by Asset Category Quarter Ending June 30, 2012 Quartet 5.00 4.00 3.00 2.00 1.00 0.00 ■ ACCOUNT ■ BCGC 0 BCGC BONDS TOTAL GROSS OF FEES TOTAL NET OF FEES Fiscal Year to Date 1 ■ACCOUNT ■BCGC 11 BCGC 5.00 4.00 3.00 2.00 1.00 0.00 BONDS Five Years Annualized 12.00 TOTAL GROSS OF FEES TOTAL NET OF FEES ■ ACCOUNT ■ BCGC ❑BCGC 8.001 6.68 6.79 6.90 5.93 6.79 6.90 5.50 6.79 6.90 4.00 0.00; BONDS TOTAL GROSS OF FEES TOTAL NET OF FEES The red total bar represents the Barclays Capital Aggregate Index. The fellow total bar represents the Barclays Capital Government /Credit Index. [CC Capital Management, Inc. 3 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis Quarter Ending June 30, 2012 Average Quality — A+ Average Duration — 4.92 Current Yield — 3.84 ICC Core Fixed Income Portfolio \Mortgage Pools US Treasuries 19.1 Municipal Bonds 3.8% 2.5% Corporate Bonds 74.7% Average Quality — AA Average Duration: — 5.99 Current Yield — 3.08 Barclays Capital Governmettt/Credithidex Government Sponsored Corporate Bonds 15.9% 30.6% 1 US Treasuries 53.5% Average Quality — AA Average Duration — 5.07 Current Yield — 3.46 Barclays Capital Aggregate Index US NIBS 30.6% ABS 0.3% CNIBS 1.9% SUS Treasuries 36.0% Corporate Bonds Government 20.6% Sponsored 10.7% ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis Quarter Ending June 30, 2012 Sectors and Market Indices Performance VS. Core Fixed Income Portfolio 2012 6.00 4.00 2.83 2.52 2.56 1.76 1.83 2,OG - 1.08 O.SG 1.33 �I ■,1;� 2.00 � & Co 0- & 0 Maturity S&P Rathig Moody 's Rating COMMONWEALTH FING AUTH PA 4r� 04 0 6/1/2024 os FA 04 AA3 so 4.554% ro ry AAA Municipal Bonds Coupon Maturity S&P Rathig Moody 's Rating COMMONWEALTH FING AUTH PA 5.653% 6/1/2024 AA- AA3 UTAH ST 4.554% 7/1/2024 AAA AAA Mortgage Backed Secyerities Coupon Maturity S&P Ratify Moody 's Rating FNCI N #725445 4.500% 5/1/2019 AA+ Aaa FGCI N #B13455 4.500% 4/1/2019 AA+ Aaa FGCI N #G12323 4.500% 8/1/2021 AA+ Aaa FG POOL #G05900 6.000% 3/1/2040 AA+ Aaa G2 POOL # 4447 5.000% 5/20/2039 AA+ Aaa GN POOL # 782119 6.000% 8/15/2036 AA+ Aaa FGLMC #G02268 6.500% 8/1/2036 AA+ Aaa GNSF 5.5% POOL #714005 5.500% 10/15/2039 AA+ Aaa FNCL # 256394 6.500% 9/1/2036 AA+ Aaa G2 POOL # 4194 5.500% 7/20/2038 AA+ Aaa FGCI #E01443 3.500% 7/1/2018 AA+ Aaa G2 POOL # 4195 6.000% 7/20/2038 AA+ Aaa GNSF M #552509 6.000% 4/15/2032 AA+ Aaa FGCI #G12205 4.500% 6/1/2021 AA+ Aaa FNCI M #254371 5.500% 7/1/2017 AA+ Aaa GN O M #781313 6.000% 7/15/2016 AA+ Aaa FNCI N #825335 4.000% 5/1/2020 AA+ Aaa FNCI N #255888 4.000% 8/1/2020 AA+ Aaa GNSF M #582153 6.000% 6/15/2032 AA+ Aaa FNCI N #829053 4.000% 8/1/2020 AA+ Aaa GovernmentlAgency Bonds Cou or: Maturity S&P Rating Moody 's Rating US TREASURY 3.000% 5/15/2042 AA+ Aaa US TREASURY 4.375% 5/15/2041 AA+ AAA [CC Capital MmiaRement, Inc. 5 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis Quarter Ending June 30, 2012 Corporate Bonds Con ott Mattirity S&P Rathig Moody 's Rating MISSISSIPPI POWER CO 4.250% 3/15/2042 A A2 GENERAL ELEC CAP CORP 2.300% 4/27/2017 AA+ Al GEORGIA POWER COMPANY 5.400% 6/1/2040 A A3 SAN DIEGO GAS & ELECTRIC 5.300% 11/15/2015 A+ Aa3 WALT DISNEY COMPANY 2.750% 8/16/2021 A A2 GOLDMAN SACHS GROUP INC 3.300% 5/3/2015 A- A3 COCA -COLA CO 3.625% 3/15/2014 A+ AA3 WELLS FARGO & COMPANY 3.500% 3/8/2022 A+ A2 OCCIDENTAL PETROLEUM CORP 4.100% 2/1/2021 A Al BROADCOM CORP 2.700% 11/1/2018 A- A2 SIMON PROPERTY GROUP LP 3.375% 3/15/2022 A- A3 ALABAMA POWER CO 3.950% 6/1/2021 A A2 BLACKROCK INC 3.375% 6/1/2022 A+ Al PMORGAN CHASE & CO 1.875% 3/20/2015 A A2 MERCK & CO INC 6.000% 9/15/2017 AA Aa3 UNITEDHEALTH GROUP INC 2.875% 3/15/2022 A- A3 VERIZON COMMUNICATIONS 4.600% 4/1/2021 A- A3 BERKSHIRE HATHAWAY FIN 4.250% 1/15/2021 AA+ AA2 WAL -MART STORES INC 1.500% 10/25/2015 AA AA2 US BANCORP 3.000% 3/15/2022 A AA3 CAMPBELL SOUP CO 4.250% 4/15/2021 A- A2 AT &T INC 3.000% 2/15/2022 A- A2 PROCTER & GAMBLE CO THE 1.800% 11/15/2015 AA- AA3 BLACKROCK INC 5.000% 12/10/2019 A+ Al STATE STREET CORP 2.875% 3/7/2016 A+ Al MICROSOFT CORP 1.625% 9/25/2015 AAA AAA GEORGE WASHINGTON UNIVERSIT 4.896% 9/15/2020 A+ Al GENERAL ELEC CAP CORP 4.650% 10/17/2021 AA+ Al MONSANTO CO 2.750% 4/15/2016 A+ Al YALE UNIVERSITY 2.900% 10/15/2014 AAA Aaa BAXTER INTERNATIONAL INC 4.250% 3/15/2020 A+ A3 NATIONAL RURAL UTIL COOP 5.500% 7/1/2013 A+ Al IBM CORP 6.500% 10/15/2013 AA- AA3 HONEYWELL INTERNATIONAL 3.875% 2/15/2014 A A2 GENERAL DYNAMICS CORP 5.250% 2/1/2014 A A2 JPMORGAN CHASE & CO 4.500% 1/24/2022 A A2 KAISER FOUNDATION HOSPITAL 3.500% 4/1/2022 A+ MCDONALD'S CORP 5.800% 10/15/2017 A A2 VERIZON COMMUNICATIONS 5.500% 4/1/2017 A- A3 CHEVRON CORP 4.950% 3/3/2019 AA AA1 CONS EDISON CO OF NY 5.850% 4/1/2018 A- A3 IBM CORP 1.950% 7/22/2016 AA- AA3 OCCIDENTAL PETROLEUM COR 3.125% 2/15/2022 A Al NATIONAL RURAL UTIL COOP 5.450% 4/10/2017 A+ Al GOLDMAN SACHS 5.250% 10/15/2013 A- A3 GENERAL ELECTRIC CAP CORP 4.625% 1/7/2021 AA+ Al GENERAL ELEC CAP CORP 3.500% 6/29/2015 AA+ Al ICC Capital Maitagemoit, hic. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis Quarter Ending June 30, 2012 Porif'olio Dlcratiort vs. Index Duration (Ratio) 1.8% 1.4% 1.0% 0.6% --+— INDEX —M— ACCT DEFENSIVE AGGRESSIVE 0.2% 6/30/2010 9/30/2010 12/31/2010 3/31/2011 6/30/2011 9/30/2011 12/31/2011 3/31/2012 6/30/2012 [CC Capital Mmiagenrent, Inc. 7 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Summarlj Quarter Ending June 30, 2012 CASH & EQUIVALENTS Total Cost Market Value Pct. Assets CASH AND EQUIVALENTS 3,245,000 3,245,000 20.2 FIXED INCOME CORPORATE BONDS 9,037,103 9,506,098 59.1 MUNICIPAL BONDS 265,000 313,592 2.0 GOVERNMENT BONDS 428,609 480,773 3.0 MORTGAGE POOLS 2,294,123 2,426,305 15.1 Accrued Interest 101,322 0.6 FIXED INCOME TOTAL 12,024,834 12,828,089 79.8 TOTAL PORTFOLIO 15,269,834 16,073,089 100.0 [CC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Appraisal Quarter Ending June 30, 2012 [CC Capital Management, Inc. 9 Unit Total Market Pct. Quantity Security Cost Cost Price Valire Assets CASH AND EQUIVALENTS CASH & CASH EQUIVALENTS $3,244,999.86 $3,244,999.86 20.20% 6 ,999.86 20.20% CORPORATE BONDS 135000 NATIONAL RURAL UTIL COOP $99.84 $134,789.40 $104.94 $141,665.35 0.90% 5.500% Due 07 -01 -13 85000 GOLDMAN SACHS $98.44 $83,674.00 $103.99 $88,392.86 0.50% 5.250% Due 10 -15 -13 135000 IBM CORP $99.24 $133,971.30 $107.53 $145,165.23 0.90% 6.500% Due 10 -15 -13 125000 GENERAL DYNAMICS CORP $99.53 $124,410.00 $107.24 $134,048.62 0.80% 5.250% Due 02 -01 -14 125000 HONEYWELL INTERNATIONAL $99.56 $124,452.50 $105.55 $131,935.12 0.80% 3.875% Due 02 -15 -14 255000 COCA -COLA CO $104.24 $265,819.65 $105.10 $268,000.92 1.70% 3.625% Due 03 -15 -14 140000 YALE UNIVERSITY $105.50 $147,695.80 $105.39 $147,543.20 0.90% 2.900% Due 10 -15 -14 225000 JPMORGAN CHASE & CO $100.14 $225,306.00 $99.92 $224,826.07 1.40% 1.875% Due 03 -20 -15 310000 GOLDMAN SACHS GROUP INC $99.93 $309,779.90 $99.99 $309,957.22 1.90% 3.300% Due 05 -03 -15 35000 GENERAL ELEC CAP CORP $99.86 $34,950.65 $105.44 $36,904.56 0.20% 3.500% Due 06 -29 -15 165000 MICROSOFT CORP $99.56 $164,275.65 $103.42 $170,635.41 1.10% 1.625% Due 09 -25 -15 200000 WAL -MART STORES INC $99.09 $198,190.00 $102.27 $204,531.00 1.30% 1.500% Due 10 -25 -15 190000 PROCTER & GAMBLE CO /THE $99.20 $188,480.00 $103.23 $196,134.15 1.20% 1.800% Due 11 -15 -15 300000 SAN DIEGO GAS & ELECTRIC $111.89 $335,658.00 $113.98 $341,951.70 2.10% 5.300% Due 11 -15 -15 180000 STATE STREET CORP $99.58 $179,253.00 $105.92 $190,657.98 1.20% 2.875% Due 03 -07 -16 150000 MONSANTO CO $99.79 $149,680.50 $105.93 $158,897.70 1.00% 2.750% Due 04 -15 -16 115000 IBIM CORP $99.43 $114,342.20 $102.87 $118,300.38 0.70% 1.950% Due 07 -22 -16 115000 VERIZON COMMUNICATIONS $102.45 $117,812.90 $117.12 $134,692.48 0.80% 5.500% Due 04 -01 -17 100000 NATIONAL RURAL UTIL COOP $99.68 $99,680.00 $116.93 $116,932.90 0.70% 5.450% Due 04 -10 -17 460000 GENERAL ELEC CAP CORP $100.19 $460,894.70 $100.68 $463,110.06 2.90% 2.300% Due 04 -27 -17 195000 MERCK & CO INC $115.26 $224,757.00 $122.29 $238,458.67 1.50% 6.000% Due 09 -15 -17 115000 MCDONALD'S CORP $102.47 $117,839.35 $121.45 $139,666.92 0.90% 5.800% Due 10 -15 -17 115000 CONS EDISON CO OF NY $99.96 $114,949.40 $121.86 $140,135.78 0.90% 5.850% Due 04 -01 -18 [CC Capital Management, Inc. 9 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Appraisal Quarter Ending June 30, 2012 [CC Capital Management, Inc. 10 Total Cost Price $238,171.90 $103.11 $114,964.35 $120.52 $179,298.00 $114.30 $139,456.80 $112.85 $155,000.00 $116.05 $51,930.00 $109.99 $198,984.00 $110.05 $246,457.75 $112.11 $202,406.00 $114.61 $193,771.50 $113.29 $230,317.40 $109.34 $316,086.40 $101.53 $154,762.50 $111.05 $123,595.20 $107.72 $189,462.30 $101.59 $110,917.40 $104.25 $265,013.25 $102.90 $231,950.40 $100.44 $195,803.40 $102.44 $223,861.50 $101.03 $118,713.35 $103.76 $229,882.70 $101.47 $341,517.00 $119.48 $534,117.90 $102.43 Market Pct. uttit t[atitity Security Cost 230000 BROADCOM CORP $103.55 1.30% 2.700% Due 11 -01 -18 1.00% 115000 CHEVRON CORP $99.97 0.30% 4.950% Due 03 -03 -19 1.40% 180000 BLACKROCK INC $99.61 1.40% 5.000% Due 12 -10 -19 1.40% 140000 BAXTER INTERNATIONAL INC $99.61 2.00% 4.250% Due 03 -15 -20 1.00% 155000 GEORGE WASHINGTON UNIVERSI; $100.00 1.20% 4.896% Due 09 -15 -20 0.70% 50000 GENERAL ELECTRIC CAP CORP $103.86 1.40% 4.625% Due 01 -07 -21 1.20% 200000 BERKSHIRE HATHAWAY FIN $99.49 0.70% 4.250% Due 01 -15 -21 1,50% 245000 OCCIDENTAL PETROLEUM CORP $100.59 3.30% 4.100% Due 02 -01 -21 0.50% 200000 VERIZON COMMUNICATIONS $101.20 4.600% Due 04 -01 -21 195000 CAMPBELL SOUP CO $99.37 4.250% Due 04 -15 -21 230000 ALABA1\-IA POWER CO $100.14 3.950% Due 06 -01 -21 320000 WALT DISNEY CONNIPANY $98.78 2.750% Due 08 -16 -21 150000 GENERAL ELEC CAP CORP $103.17 4.650% Due 10 -17 -21 120000 JPMORGAN CHASE & CO $103.00 4.500% Due 01 -24 -22 190000 AT &T INC $99.72 3.000% Due 02 -15 -22 110000 OCCIDENTAL PETROLEUM COR $100.83 3.125% Due 02 -15 -22 265000 WELLS FARGO & COMPANY $100.00 3.500% Due 03 -08 -22 230000 SINION PROPERTY GROUP LP $100.85 3.375% Due 03 -15 -22 195000 US BANCORP $100.41 3.000% Due 03 -15 -22 225000 UNITEDHEALTH GROUP INC $99.49 2.875% Due 03 -15 -22 115000 KAISER FOUNDATION HOSPITAL $103.23 3.500% Due 04 -01 -22 230000 BLACKROCK INC $99.95 3.375% Due 06 -01 -22 300000 GEORGIA POWER COMMPANY $113.84 5.400% Due 06 -01 -40 510000 MISSISSIPPI POWER CO $104.73 4.250% Due 03 -15 -42 Accrued Interest [CC Capital Management, Inc. 10 Total Cost Price $238,171.90 $103.11 $114,964.35 $120.52 $179,298.00 $114.30 $139,456.80 $112.85 $155,000.00 $116.05 $51,930.00 $109.99 $198,984.00 $110.05 $246,457.75 $112.11 $202,406.00 $114.61 $193,771.50 $113.29 $230,317.40 $109.34 $316,086.40 $101.53 $154,762.50 $111.05 $123,595.20 $107.72 $189,462.30 $101.59 $110,917.40 $104.25 $265,013.25 $102.90 $231,950.40 $100.44 $195,803.40 $102.44 $223,861.50 $101.03 $118,713.35 $103.76 $229,882.70 $101.47 $341,517.00 $119.48 $534,117.90 $102.43 Market Pct. Value Assets $237,147.71 1.50% $138,602.25 0.90% $205,747.20 1.30% $157,988.88 1.00% $179,874.40 1.10% $54,995.10 0.30% $220,109.20 1.40% $274,672.68 1.70% $229,230.00 1.40% $220,918.03 1.40% $251,474.87 1.60% $324,909.44 2.00% $166,578.90 1.00% $129,266.16 0.80% $193,018.53 1.20% $114,678.30 0.70% $272,675.19 1.70% $231,016.37 1.40% $199,753.12 1.20% $227,323.80 1.40% $119,328.94 0.70% $233,387.44 1,50% $358,438.80 2.20% $522,418.50 3.30% $85,997.31 0.50% PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Appraisal Quarter Ending June 30, 2012 11 Ultit Total Market Pct. Qiialttitl Secitriti Cost Cost Price Valtie Assets MUNICIPAL BONDS 140000 COMMONWEALTH FING AUTH PA $100.00 $140,000.00 $119.01 $166,614.00 1.00% 5.653% Due 06 -01 -24 125000 UTAH ST $100.00 $125,000.00 $117.58 $146,977.50 0.90% 4.554% Due 07 -01 -24 Accrued Interest $3,467.97 0.00% 265,000.00 $317,059.47 2.00 0 GOVERNMENT BONDS 160000 US TREASURY NIB $101.11 $161,775.00 $133.56 $213,700.00 1.30% 4.375% Due 05 -15 -41 255000 US TREASURY NIB $104.64 $266,833.59 $104.73 $267,072.72 1.70% 3.000% Due 05 -15 -42 Accrued Interest $1,831.25 0.00% $428,609.59 $482,603.97 3. o MORTGAGE POOLS 10832.26 GNJO M #781313 $103.12 $11,170.77 $105.54 $11,432.79 0.10% 6.000% Due 07 -15 -16 27319.85 FNCI 11 #254371 $99.56 $27,200.33 $108.98 $29,773.36 0.20% 5.500% Due 07 -01 -17 101408.531 FGCI #E01443 $105.41 $106,890.93 $105.56 $107,047.25 0.70% 3.500% Due 07 -01 -18 1749.77 FGCI N #B13455 $99.71 $1,744.61 $106.88 $1,870.18 0.00% 4.500% Due 04 -01 -19 35342.97 FNCI N #725445 $96.09 $33,961.91 $107.62 $38,034.62 0.20% 4.500% Due 05 -01 -19 20152.1 FNCI N #825335 $97.31 $19,610.51 $107.04 $21,570.34 0.10% 4.000% Due 05 -01 -20 18601.79 FNCI N #255888 $97.31 $18,101.87 $107.04 $19,910.93 0.10% 4.000% Due 08 -01 -20 13140.76 FNCI N #829053 $97.00 $12,746.54 $107.04 $14,065.57 0.10% 4.000% Due 08 -01 -20 36820.89 FGCI #G12205 $96.48 $35,526.41 $106.82 $39,331.71 0.20% 4.500% Due 06 -01 -21 1914.842 FGCI N #G12323 $95.88 $1,835.86 $106.82 $2,045.42 0.00% 4.500% Due 08 -01 -21 64108.99 GNSF M #552509 $98.77 $63,317.64 $113.48 $72,748.13 0.50% 6.000% Due 04 -15 -32 16455.44 GNSF M #582153 $99.83 $16,427.16 $113.66 $18,703.78 0.10% 6.000% Due 06 -15 -32 221622.175 FGLMC #G02268 $102.08 $226,227.92 $112.29 $248,849.79 1.50% 6.500% Due 08 -01 -36 230834.862 GN POOL # 782119 $107.08 $247,173.64 $112.45 $259,570.34 1.60% 6.000% Due 08 -15 -36 210966.97 FNCL # 256394 $102.00 $215,186.38 $112.90 $238,188.04 1.50% 6.500% Due 09 -01 -36 177488.93 G2 POOL # 4194 $106.12 $188,360.13 $111.06 $197,122,76 1.20% 5.500% Due 07 -20 -38 68103.162 G2 POOL # 4195 $99.89 $68,028.59 $112.16 $76,381.58 0.50% 6.000% Due 07 -20 -38 245499.164 G2 POOL # 4447 $104.81 $257,313.81 $110.52 $271,313.65 1.70% 5,000% Due 05 -20 -39 [CC Cavital Mattavemetit, Inc. 11 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Appraisal Quarter Ending June 30, 2012 [CC Capital Management, Inc. 12 Uttit Total Market Pct. uantity Security Cost Cost Price Valite Assets 197131.951 GNSF 5.5% POOL #714005 $106.16 $209,267.89 $111.03 $218,876.99 1.40% 5.500% Due 10 -15 -39 491556.54 FG POOL #G05900 $108.64 $534,030.10 $109.75 $539,467.57 3.40% 6.000% Due 03 -01 -40 Accrued Interest $10,025.21 0.10% $2,294,122.99 $2,436,329.98 15.20% TOTAL PORTFOLIO $15,269,834.34 $16,073,088.75 100.00% [CC Capital Management, Inc. 12 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Front 03 -31 -12 To 06 -30 -12 Trade Settle Unit Date Date Quantity Security Price Amount PURCHASES 05 -22 -12 05 -25 -12 230,000.000 BLACKROCK INC 99.95 229,882.70 3.375% Due 06 -01 -22 04 -11 -12 04 -16 -12 230,000.000 GENERAL ELEC CAP CORP 110.39 253,894.70 5.875% Due 01 -14 -38 04 -26 -12 05 -01 -12 230,000.000 GENERAL ELEC CAP CORP 100.07 230,172.50 2.300% Due 04 -27 -17 05 -09 -12 05 -14 -12 230,000.000 GENERAL ELEC CAP CORP 100.31 230,722.20 2.300% Due 04 -27 -17 04 -30 -12 05 -03 -12 310,000.000 GOLDMAN SACHS GROUP INC 99.93 309,779.90 3.300% Due 05 -03 -15 05 -17 -12 05 -22 -12 195,000.000 GOLDMAN SACHS GROUP INC 101.52 197,958.15 5.750% Due 01 -24 -22 05 -07 -12 05 -10 -12 115,000.000 KAISER FOUNDATION HOSPITAL 103.23 118,713.35 3.500% Due 04 -01 -22 06 -22 -12 06 -27 -12 510,000.000 MISSISSIPPI POWER CO 104.73 534,117.90 4.250% Due 03 -15 -42 05 -22 -12 05 -25 -12 195,000.000 PEPSICO INC 120.52 235,014.00 5.500% Due 01 -15 -40 06 -20 -12 06 -25 -12 230,000.000 SIMON PROPERTY GROUP LP 100.85 231,950.40 3.375% Due 03 -15 -22 04 -20 -12 04 -25 -12 225,000.000 UNITEDHEALTH GROUP INC 99.49 223,861.50 2.875% Due 03 -15 -22 06 -13 -12 06 -15 -12 255,000.000 US TREASURY NB 104.64 266,833.59 3.000% Due 05 -15 -42 04 -18 -12 04 -23 -12 265,000.000 WELLS FARGO & COMPANY 100.00 265,013.25 3.500% Due 03 -08 -22 _ 3,327,914.14 SALES 04 -03 -12 04 -09 -12 235,000.000 AFLAC INC 101.26 237,961.00 2.650% Due 02 -15 -17 06 -26 -12 06 -29 -12 150,000.000 AMGEN INC 102.80 154,194.00 2.300% Due 06 -15 -16 06 -26 -12 06 -29 -12 30,000.000 AMGEN INC 117.41 35,224.50 5.700% Due 02 -01 -19 05 -23 -12 05 -29 -12 200,000.000 AT &T INC 102.76 205,530.00 4.950% Due 01 -15 -13 06 -13 -12 06 -18 -12 230,000.000 CITIGROUP INC 103.66 238,415.70 4.450% Due 01 -10 -17 05 -14 -12 05 -15 -12 310,000.000 FREDDIE MAC 101.35 314,178.80 2.375 %Due 01 -13 -22 13 ICC Capital Management PURCHASE AND SALE PALJV BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 03 -31 -12 To 06 -30 -12 Trade Date Settle Date Quantity Security Unit Price Amount 06 -15 -12 06 -15 -12 300,000.000 FREDDIE MAC 100.00 300,000.00 05 -01 -12 05 -15 -12 5.900% Due 06 -15 -22 100.00 24,634.74 04 -25 -12 04 -30 -12 230,000.000 GENERAL ELEC CAP CORP 111.55 256,558.10 06 -01 -12 06 -15 -12 5.875% Due 01 -14 -38 100.00 21,191.37 05 -09 -12 05 -14 -12 75,000.000 GENERAL ELEC CAP CORP 108.90 81,675.75 04 -01 -12 04 -15 -12 4.650% Due 10 -17 -21 100.00 1,548.25 05 -02 -12 05 -07 -12 200,000.000 GOLDMAN SACHS GROUP INC 105.10 210,210.00 05 -01 -12 05 -15 -12 5.750% Due 01 -24 -22 100.00 3,176.35 06 -07 -12 06 -12 -12 195,000.000 GOLDMAN SACHS GROUP INC 104.68 204,120.15 06 -01 -12 06 -15 -12 5.750% Due 01 -24 -22 100.00 1,539.18 06 -22 -12 06 -27 -12 230,000.000 MORGAN STANLEY 98.30 226,087.70 2.875% Due 01 -24 -14 06 -22 -12 06 -27 -12 200,000.000 MORGAN STANLEY 97.07 194,138.00 3.800% Due 04 -29 -16 06 -26 -12 06 -29 -12 120,000.000 MORGAN STANLEY 103.41 124,093.20 6.000% Due 05 -13 -14 06 -15 -12 06 -20 -12 195,000.000 PEPSICO INC 124.10 241,995.00 5.500% Due 01 -15 -40 04 -26 -12 05 -01 -12 215,000.000 UNIVERSITY OF CHICAGO 116.43 250,320.20 5.420% Due 10 -01 -30 04 -13 -12 04 -18 -12 225,000.000 UNIVERSITY OF PENNSYLVANIA 101.27 227,853.00 4.674% Due 09 -01 -12 05 -14 -12 05 -15 -12 190,000.000 US TREASURY NIB 126.91 241,121.88 4.250% Due 11 -15 -40 04 -18 -12 04 -23 -12 260,000.000 WELLS FARGO & COMPANY 102.89 267,508.80 2.625% Due 12 -15 -16 04 -18 -12 04 -23 -12 160,000.000 WELLS FARGO & COMPANY 107.19 171,505.60 3.676% Due 06-15-16 _ 4,182,691.38 PRINCIPAL PAYDOWNS 04 -01 -12 04 -15 -12 14,553.320 FG POOL #G05900 100.00 14,553.32 6.000% Due 03 -01 -40 05 -01 -12 05 -15 -12 24,634.740 FG POOL #G05900 100.00 24,634.74 6.000% Due 03 -01 -40 06 -01 -12 06 -15 -12 21,191.370 FG POOL #G05900 100.00 21,191.37 6.000% Due 03 -01 -40 04 -01 -12 04 -15 -12 1,548.250 FGCI #E01443 100.00 1,548.25 3.500% Due 07 -01 -18 05 -01 -12 05 -15 -12 3,176.350 FGCI #E01443 100.00 3,176.35 3.500% Due 07 -01 -18 06 -01 -12 06 -15 -12 1,539.180 FGCI #E01443 100.00 1,539.18 3.500% Due 07 -01 -18 14 ICC Capital Management PURCHASE AND SALE PALM BEA CH GARDENS POLICE PENSION FUND FIXED INCOME From 03 -31 -12 To 06 -30 -12 Trade Date Settle Date Quantity Security Unit Price Amount 04 -01 -12 04 -15 -12 1,400.400 FGCI #G 12205 100.00 1,400.40 4.500% Due 06 -01 -21 05 -01 -12 05 -15 -12 1,316.720 FGCI #G 12205 100.00 1,316.72 4.500% Due 06 -01 -21 06 -01 -12 06 -15 -12 1,100.370 FGCI #G 12205 100.00 1,100.37 4.500% Due 06 -01 -21 04 -01 -12 04 -15 -12 73.510 FGCI N #B 13455 100.00 73.51 4.500% Due 04 -01 -19 05 -01 -12 05 -15 -12 34.130 FGCI N #B 13455 100.00 34.13 4.500% Due 04 -01 -19 06 -01 -12 06 -15 -12 32.650 FGC1 N #B 13455 100.00 32.65 4.500% Due 04 -01 -19 04 -01 -12 04 -15 -12 94.230 FGCI N #G 12323 100.00 94.23 4.500% Due 08 -01 -21 05 -01 -12 05 -15 -12 72.310 FGCI N #G 12323 100.00 72.31 4.500% Due 08 -01 -21 06 -01 -12 06 -15 -12 91.960 FGCI N #G12323 100.00 91.96 4.500% Due 08 -01 -21 04 -01 -12 04 -15 -12 1,922.216 FGLMC #G02268 100.00 1,922.22 6.500% Due 08 -01 -36 04 -01 -12 04 -15 -12 6,559.194 FGLMC #G02268 100.00 6,559.19 6.500% Due 08 -01 -36 05 -01 -12 05 -15 -12 1,956.240 FGLMC #G02268 100.00 1,956.24 6.500% Due 08 -01 -36 05 -01 -12 05 -15 -12 6,675.330 FGLMC #G02268 100.00 6,675.33 6.500% Due 08 -01 -36 06 -01 -12 06 -15 -12 2,689.430 FGLMC #G02268 100.00 2,689.43 6.500% Due 08 -01 -36 06 -01 -12 06 -15 -12 9,177.240 FGLMC #G02268 100.00 9,177.24 6.500% Due 08 -01 -36 04 -01 -12 04 -25 -12 644.070 FNCI M #254371 100 .00 644.07 5.500% Due 07 -01 -17 05 -01 -12 05 -25 -12 717.350 FNCI M #254371 100.00 717.35 5.500% Due 07 -01 -17 06 -01 -12 06 -25 -12 787.990 FNCI M #254371 100.00 787.99 5.500% Due 07 -01 -17 04 -01 -12 04 -25 -12 220.680 FNCI N #255888 100.00 220.68 4.000% Due 08 -01 -20 05 -01 -12 05 -25 -12 213.400 FNCI N #255888 100.00 213.40 4.000% Due 08 -01 -20 06 -01 -12 06 -25 -12 212.500 FNCI N #255888 100.00 212.50 4.000% Due 08 -01 -20 04 -01 -12 04 -25 -12 34.081 FNCI N #725445 100.00 34.08 4.500% Due 05 -01 -19 i5 1CC Capital ivlanagement PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 03 -31 -12 To 06 -30 -12 Trade Date Settle Date Quantity Security Unit Price Amount 04 -01 -12 04 -25 -12 1,097.909 FNCI N #725445 100.00 1,097.91 4.500% Due 05 -01 -19 05 -01 -12 05 -25 -12 33.045 FNCI N #725445 99.99 33.04 4.500% Due 05 -01 -19 05 -01 -12 05 -25 -12 1,064.535 FNCI N #725445 100.00 1,064.54 4.500% Due 05 -01 -19 06 -01 -12 06 -25 -12 32.306 FNCI N #725445 100.01 32.31 4.500% Due 05 -01 -19 06 -01 -12 06 -25 -12 1,040.724 FNCI N #725445 100.00 1,040.72 4.500% Due 05 -01 -19 04 -01 -12 04 -25 -12 1,716.430 FNCI N #825335 100.00 1,716.43 4.000% Due 05 -01 -20 05 -01 -12 05 -25 -12 227.120 FNCI N #825335 100.00 227.12 4.000% Due 05 -01 -20 06 -01 -12 06 -25 -12 251.050 FNCI N #825335 100.00 251.05 4.000% Due 05 -01 -20 04 -01 -12 04 -25 -12 1,057.690 FNCI N #829053 100.00 1,057.69 4.000% Due 08 -01 -20 05 -01 -12 05 -25 -12 349.570 FNCI N #829053 100.00 349.57 4.000% Due 08 -01 -20 06 -01 -12 06 -25 -12 147.920 FNCI N #829053 100.00 147.92 4.000% Due 08 -01 -20 04 -01 -12 04 -25 -12 6,005.500 FNCL # 256394 100.00 6,005.50 6.500% Due 09 -01 -36 05 -01 -12 05 -25 -12 9,016.790 FNCL 4 256394 100.00 9,016.79 6.500% Due 09 -01 -36 06 -01 -12 06 -25 -12 13,399.290 FNCL # 256394 100.00 13,399.29 6.500% Due 09 -01 -36 04 -01 -12 04 -20 -12 5,411.470 G2 POOL # 4194 100.00 5,411.47 5.500% Due 07 -20 -38 05 -01 -12 05 -20 -12 5,328.600 G2 POOL # 4194 100.00 5,328.60 5.500% Due 07 -20 -38 06 -01 -12 06 -20 -12 3,726.510 G2 POOL # 4194 100.00 3,726.51 5.500% Due 07 -20 -38 04 -01 -12 04 -20 -12 2,513.400 G2 POOL # 4195 100.00 2,513.40 6.000% Due 07 -20 -38 05 -01 -12 05 -20 -12 2,415.670 G2 POOL # 4195 100.00 2,415.67 6.000% Due 07 -20 -38 06 -01 -12 06 -20 -12 1,321.640 G2 POOL # 4195 100.00 1,321.64 6.000% Due 07 -20 -38 04 -01 -12 04 -20 -12 6,284.510 G2 POOL # 4447 100.00 6,284.51 5.000% Due 05 -20 -39 05 -01 -12 05 -20 -12 4,699.850 G2 POOL # 4447 100.00 4,699.85 5.000% Due 05 -20 -39 16 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Front 03 -31 -12 To 06 -30 -12 Trade Date Settle Date Quantity Security Unit Price Amount 06 -01 -12 06 -20 -12 4,234.170 G2 POOL # 4447 100.00 4,234.17 5.000% Due 05 -20 -39 04 -01 -12 04 -15 -12 6,429.620 GN POOL # 782119 100.00 6,429.62 6.000% Due 08 -15 -36 05 -01 -12 05 -15 -12 6,155.710 GN POOL # 782119 100.00 6,155.71 6.000% Due 08 -15 -36 06 -01 -12 06 -15 -12 4,020.570 GN POOL # 782119 100.00 4,020.57 6.000% Due 08 -15 -36 04 -01 -12 04 -15 -12 433.330 GNJO M #781313 100.00 433.33 6.000% Due 07 -15 -16 05 -01 -12 05 -15 -12 397.390 GNJO M #781313 100.00 397.39 6.000% Due 07 -15 -16 06 -01 -12 06 -15 -12 617.310 GNJO M #781313 100.00 617.3I 6.000% Due 07 -15 -16 04 -01 -12 04 -15 -12 13,557.650 GNSF 5.5% POOL #714005 100.00 13,557.65 5.500% Due 10 -15 -39 05 -01 -12 05 -15 -12 6,972.590 GNSF 5.5% POOL #714005 100.00 6,972.59 5.500% Due 10 -15 -39 06 -01 -12 06 -15 -12 17,279.420 GNSF 5.5% POOL #714005 100.00 17,279.42 5.500% Due 10 -15 -39 04 -01 -12 04 -15 -12 2,799.000 GNSF M #552509 100.00 2,799.00 6.000% Due 04 -15 -32 05 -01 -12 05 -15 -12 2,325.830 GNSF M #552509 100.00 2,325.83 6,000% Due 04 -15 -32 06 -01 -12 06 -15 -12 3,437.260 GNSF M #552509 100.00 3,437.26 6.000% Due 04 -15 -32 04 -01 -12 04 -15 -12 41.380 GNSF M #582153 100.00 41.38 6.000% Due 06 -15 -32 05 -01 -12 05 -15 -12 49.880 GNSF M #582153 100.00 49.88 6.000% Due 06 -15 -32 06 -01 -12 06 -15 -12 46.260 GNSF M #582153 100.00 46.26 6.000% Due 06 -15 -32 _ 238,608.11 17 ICC Capital TvIanagement REALIZED GAINS AND LOSSES PALM BEA CH GARDENS POLICE PENSION FUND FIXED INCOME From 03 -31 -12 Through 06 -30 -12 13 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 12 -15 -06 04 -01 -12 1,921216 FGLNIC #G02268 1,962.17 1,922.22 -39.95 6.500% Due 08 -01 -36 01 -08 -07 04 -01 -12 6,559.194 FGLMC 4G02268 6,695.51 6,559.19 - 136.32 6.500% Due 08 -01 -36 02 -21 -07 04 -01 -12 1,400.400 FOCI #G12205 1,351.17 1,400.40 49.23 4.500% Due 06 -01 -21 08 -24 -06 04 -01 -12 94.230 FGCI N #G12323 90.34 94.23 3.89 4.500% Due 08 -01 -21 02-02-11 04 -01 -12 14,553.320 FG POOL #G05900 15,810.82 14,553.32 - 1,257.50 6.000% Due 03 -01-40 08 -03 -11 04 -01 -12 1,548.250 FGCI #E01443 1,631.95 1,548.25 -83.70 3.500% Due 07 -01 -18 09.08 -04 04 -01 -12 73.510 FGCI N #13 1345 5 73.29 73.51 0.22 4.500% Due 04 -01 -19 05 -23 -02 04 -01 -12 644.070 FNC1&1 9254371 641.25 644.07 2.82 5.500% Due 07 -01 -17 09.08 -05 04 -01 -12 220.680 FNCI N #255888 214.75 220.68 5.93 4.000% Due 08 -01 -20 01 -08 -07 04 -01 -12 6,005.500 FNCL #256394 6,125.61 6,005.50 - 120.11 6.500% Due 09 -01 -36 09 -15 -04 04 -01 -12 34.081 FNCI N #725445 34.11 34.08 -0.03 4.500% Due 05 -01 -19 01 -29 -07 04 -01 -12 1,097.909 FNCI N #725445 1,05165 1,097.91 44.26 4.500% Due 05 -01 -19 09 -08 -05 04 -01 -12 1,716.430 FNCI N #825335 1,670.30 1,716.43 46.13 4.000% Due 05 -01 -20 08 -23 -05 04 -01 -12 1,057.690 FNCI N #829053 1,025.96 1,057.69 31.73 4.000% Due 08 -01 -20 06 -13 -02 04 -0142 41.380 GNSFM 4582153 41.3E 41.38 0.07 6.000% Due 06 -15 -32 03.10.10 04 -01 -12 6,284.510 G2 POOL # 4447 6,586.95 6,284.51 - 302.44 5.000% Due 05 -20 -39 12 -18 -09 04 -01 -12 5,411.470 G2 POOL 9 4194 5,742.92 5,411.47 - 331.45 5.500% Due 07 -20 -38 07 -22 -08 04 -01 -12 2,513.400 G2 POOL # 4195 2,510.65 2,513.40 2.75 6.000% Due 07 -20 -38 04 -15 -02 04 -01 -12 2,799.000 GNSF NI 4552509 2,764.45 2,799.00 34.55 6.000% Due 04 -15 -32 07 -02.02 04 -01 -12 433.330 GN10 M 9781313 446.87 433.33 -13.54 6.000% Due 07 -15 -16 02 -22 -10 04 -01 -12 6,429.620 GN POOL # 782119 6,884.72 6,429.62 - 455.10 6.000% Due 08 -15 -36 12 -03 -09 04 -01 -12 13,557.650 GNSF5.5 % POOL #714005 14,392.29 13,557.65 - 834.64 5.500% Due 10 -15 -39 02.10.12 04 -03 -12 235,000.000 AFLAC INC 234,844.90 237,961.00 3,116.10 2.650% Due 02 -15 -17 03 -30 -12 04 -13 -12 225,000.000 UNIVERSITY OF 225,000.00 227,85100 2,853.00 PENNSYLVANIA 4.674% Due 09 -01 -12 01 -12.12 04 -18 -12 260,000.000 WELLS FARGO & 260,785.20 267,508.80 6,723.60 COMPANY 2,625% Due 12 -15 -16 02 -10 -11 04 -18 -12 160,000.000 WELLS FARGO& 161,078.56 171,505.60 10,427.04 COMPANY 3.676% Due 06 -15 -16 13 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 03 -31 -12 Through 06 -30 -12 Open Date Close Date Quantity Security 04 -11 -12 04 -25 -12 230,000.000 GENERAL ELEC CAP 6,814.05 6,675.33 CORP 1,270.43 1,316.72 5.875% Due 01 -14 -38 05 -12 -10 04 -26 -12 215,000.000 UNIVERSITY OF CHICAGO 26,763.34 24,634.74 5.420% Due 10 -01 -30 12 -15 -06 05 -01 -12 1,956.240 FGLNIC 9GO2268 34.03 34.13 6.500% Due 08 -01 -36 01 -08 -07 05 -01 -12 6,675.330 FGLi4IC 4GO2268 207.66 213.40 6.5001/o Due 08 -01 -36 02 -21 -07 05 -01 -12 1,316.720 FGCI #G 12205 33.07 33.04 4.500% Due 06 -01 -21 08 -24 -06 05 -01 -12 72.310 FGCI N #G12323 221.02 227.12 4,500% Due 08 -01 -21 02 -02 -11 05 -01 -12 24,634.740 FG POOL 9005900 49.79 49.88 6.000% Due 03 -01 -40 08 -03 -11 05 -01 -12 3,176350 FGCI #E01443 5,654.98 5,328.60 3.500% Due 07 -01 -13 09 -08 -04 05.01 -12 34.130 FGCI N #B13455 2,297.12 2,325.83 4.500% Due 04 -01 -19 05 -23 -02 05 -01 -12 717.350 FNCI M #254371 6,591.42 6,155.71 5.500% Due 07 -01 -17 09 -08.05 05.01 -12 213.400 FNCI N 4255888 207,784.00 210,210.00 4.000% Due 08 -01 -20 01 -08 -07 05 -01 -12 9,016.790 FNCL 4 256394 6.500% Due 09 -01 -36 09 -15 -04 05.01 -12 33.045 FNCI N 4725445 4,500% Due 05 -01 -19 01 -29 -07 05 -01 -12 1,064.535 FNCIN #725445 4.500% Due 05 -01 -19 09 -08 -05 05 -01 -12 227.120 FNCI N 4825335 4.000% Due 05.01 -20 08 -23 -05 05 -01 -12 349.570 FNCI N 4829053 4.000% Due 08 -01 -20 06 -13 -02 05 -01 -12 49.880 GNSF M #582153 6.000% Due 06 -15 -32 03 -10.10 05 -01 -12 4,699.850 G2 POOL # 4447 5.000% Due 05 -20 -39 12 -18 -09 05 -01 -12 5,323.600 G2 POOL # 4194 5.5001/o Due 07.20.38 07 -22 -08 05 -01 -12 2,415.670 G2 POOL # 4195 6.000% Due 07 -20 -38 04 -15 -02 05 -01 -12 2,325.830 GNSF NI 4552509 6.000% Due 04 -15 -32 07 -02 -02 05 -01 -12 397.390 GNJO M #781313 6.000% Due 07.15 -16 02 -22 -10 05 -01 -12 6,155.710 GN POOL 4 782119 6.000% Due 08 -15 -36 12 -03 -09 05 -01 -12 6,972,590 GNSF 5.5% POOL 9714005 5.500 %Due 10 -15 -39 01 -26 -12 05 -02 -12 200,000.000 GOLDMAN SACKS GROUP INC 5.750% Due 01 -24 -22 12 -21 -11 05 -09 -12 75,000.000 GENERAL ELEC CAP CORP 4.650% Due 10 -17 -21 19 Gain Or Loss Cost Basis Proceeds Short Term Tong Term 253,894.70 256,558.10 2,663.40 214,778.55 250,320.20 35,541.65 1,996.90 1,956.24 -40.66 6,814.05 6,675.33 - 138.72 1,270.43 1,316.72 46.29 69.33 72.31 2.98 26,763.34 24,634.74 - 2,128.60 3,348.07 3,176.35 - 171.72 34.03 34.13 0.10 714.21 717.35 3.14 207.66 213.40 5.74 9,197.13 9,016.79 - 180.34 33.07 33.04 -0.03 1,021.62 1,064.54 42.92 221.02 227.12 6.10 339.08 349.57 10.49 49.79 49.88 0.09 4,926.03 4,699.85 - 226.18 5,654.98 5,328.60 - 326.38 2,413.02 2,415.67 2.65 2,297.12 2,325.83 28.71 409.81 39739 -12.42 6,591.42 6,155.71 - 435.71 7,401.34 6,972.59 - 429.25 207,784.00 210,210.00 2,426.00 77,381.25 81,675.75 4,294.50 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Front 03 -31 -12 Through 06 -30 -12 Open Date Close Date Quantity Security Cost Basis Proceeds Gain Or Loss Short Term Long Term 07 -19 -11 05 -14 -12 190,000.000 US TREASURY NIB 188,218.75 241,I21.88 52,903.13 4.250 %Due 11 -15 -40 01 -19 -12 05 -14 -12 310,000.000 FREDDIFMAC 309,370.70 314,178.80 4,808.10 2.375% Due 01 -13 -22 12 -03 -07 05 -23 -12 200,000.000 AT &T INC 200,592.00 205,530.00 4,938.00 4.950% Due 01 -15 -13 12 -15 -06 06 -01 -12 2,689.430 FGLMC #G02268 2,74532 2,689.43 -55.89 6.500% Due 08 -01 -36 01 -08 -07 06.01 -12 9,177.240 FGLiv1C 9G02268 9,367.96 9,177.24 - 190.72 6.500% Due 08 -01 -36 02 -21 -07 06 -01 -12 1,100.370 FGC1 #G12205 1,061.69 1,10037 38.68 4.500% Due 06.01 -21 08 -24 -06 06 -01 -12 91.960 FGCIN 4G12323 88.17 91.96 179 4.500% Due 08 -01 -21 02 -02 -11 06 -01 -12 21,191,370 FG POOL #G05900 23,022.44 21,191.37 - 1,831.07 6.000% Due 03 -0140 08 -03 -11 06 -01 -12 1,539.180 FGCI #EO1443 1,622.39 1,539.18 -83.21 3.500% Due 07 -01 -18 09 -08 -04 06 -01 -12 31650 FGCI N #13 13455 3155 32.65 0.10 4.500% Due 04 -01 -19 05 -23 -02 06 -01 -12 787.990 FNCI vl 9254371 784.54 737.99 145 5.500% Due 07 -01 -17 09 -08 -05 06 -01 -12 212.500 FNCI N #255888 206.79 212.50 5.71 4.000% Due 08 -01 -20 01 -08 -07 06 -01 -12 13,399.290 FINCL # 256394 13,667.28 13,399.29 - 267.99 6.500% Due 09 -01 -36 09 -15 -04 06 -01 -12 32.306 FNCI N 4725445 32.33 32.31 -0.02 4.500% Due 05 -01 -19 01 -29 -07 06 -01 -12 1,040.724 FNCI N #725445 998.77 1,040.72 41.95 4.500% Due 05 -01 -19 09 -08.05 06 -01 -12 251.050 FNCI N 4825335 244.30 251.05 6.75 4.000% Due 05 -01 -20 08 -23 -05 06 -01 -12 147.920 FNCI N #829053 143.48 147.92 4.44 4.000% Due 08 -01 -20 06 -13 -02 06.01 -12 46.260 GNSF M #582153 46.18 46.26 0.08 6.000% Due 06 -15 -32 03 -10 -10 06 -01 -12 4,234.170 02 POOL 4 4447 4,437.94 4,234.17 - 203.77 5.000% Due 05 -20 -39 12 -18.09 06.01 -12 3,726.510 G2 POOL 9 4194 3,954.76 3,726.51 - 228.25 5.500% Due 07 -20 -38 07 -22 -08 06.01 -12 1,321.640 G2 POOL # 4195 1,320.19 1,321.64 1.45 6.000% Due 07 -20 -38 04 -15 -02 06 -01 -12 3,437.260 GNSF M #552509 3,394.83 3,437.26 42.43 6.000% Due 04 -15 -32 07.02 -02 06.01 -12 617.310 GNJO N1 4781313 636.60 617.31 -19.29 6.000% Due 07 -15 -16 02 -22 -10 06 -01 -12 4,020.570 GIN POOL # 782119 4,305.15 4,020.57 - 284.58 6.000% Due 08 -15 -36 12 -03 -09 06 -01 -12 17,279.420 GNSF 5.5% POOL 4714005 18,343.18 17,279.42 - 1,063.76 5.500 %Due 10 -15 -39 05 -17 -12 06 -07 -12 195,000000 GOLDIoIAN SACHS 197,958.15 204,120.15 6,162.00 GROUP INC 5,750% Due 01 -24 -22 02 -03 -12 06 -13 -12 230,000.000 CITIGROUP WC 243,852.90 238,415.70 - 5,437.20 4.450% Due 01 -10 -17 20 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 03 -31 -12 Through 06 -30 -12 Open Close Gain Or Loss Short Term Long Term Date Date Quantity Security 295,890.00 05 -22 -12 06 -15 -12 195,000.000 PEPSICO INC 228,636.10 226,087.70 5.500% Due 01.15 -40 07 -23 -07 06 -15 -12 300,000.000 FREDDIE MAC - 942.00 5.900% Due 06 -15 -22 03 -01 -12 06 -22 -12 230,000.000 NIORGAN STANLEY 151,309.50 154,194.00 2.875% Due 0 1 -24-14 01 -26 -12 06 -22 -12 200,000.000 MORGAN STANLEY 5,291.40 3.800% Due 04 -29 -16 05 -08 -09 06 -26 -12 120,000.000 MORGAN STANLEY 6.000% Due 05 -13 -14 07 -12 -11 06 -26 -12 150,000.000 ANIGEN INC 86,549.09 53,784.99 2.300% Due 06 -15 -16 01 -13 -09 06 -26 -12 30,000.000 ANIGEN INC 5.700% Due 02 -01 -19 TOTAL GAINS TOTAL LOSSES TOTAL REALIZED GAIN/LOSS 140,334.09 21 Cost Basis Proceeds Gain Or Loss Short Term Long Term 235,014.00 241,995.00 6,981.00 295,890.00 300,000.00 4,110.00 228,636.10 226,087.70 - 2,548.40 195,080.00 194,138.00 - 942.00 119,581.20 124,093.20 4,512.00 151,309.50 154,194.00 2,384.50 29,933.10 35,224.50 5,291.40 95,815.33 65,339.69 - 9,266.24 - 11,554.70 4,280,965.40 4,421,299.49 86,549.09 53,784.99 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Review Quarter Ending June 30, 2012 lCC Capital Maiiagenterzt, hic. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance Report Quarter Ending June 30, 2012 Total Return Summary Page...... 1 Portfolio Allocation Page...... 2 Investment Performance by Asset Category Page...... 3 Portfolio Sector Diversification Page...... 4 Investment Performance by Sectors Page...... 5 Portfolio Attributes Page...... 6 Portfolio Summary Page...... 7 Portfolio Appraisal Page...... 8 Brokers Commission Page...... 10 Purchases & Sales Page...... 13 Realized Gains/ Losses Page...... 17 [CC Capital Maiiagenieiit, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Total Return Summary Quarter Ending June 30, 2012 Starting Value $6,465,222 $4,623,373 $1,200,000 Ending Value $5,734,368 $5,734,368 $5,734,368 Difference ($730,854) $1,110,996 $4,534,368 Net Contributions/ (Withdrawals) ($410,857) $104,196 $3,304,266 Gain/(Loss)from Itivestmetits ($319,997) $1,006,800 $1,230,103 TOTAL RETURN -5.28% 1 19.09% 1 7.21% ANNUALIZED RETURN 1 1 1.40% ICC Capital Management, Inc. 1 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Allocation at Market Quarter Ending June 30, 2012 Asset Allocation: 100/0 (Mkt) Market Value as of 03/31/12 CASH /EQUIVS -1.8% EQUITY 101.8% Market Value as of 06130112 CASH /EQUIVS 1.6% EQUITY 98.4% Mkt Value Mkt Value % Mkt Value Mkt Value % as of 03/31/12 as of 03/302 as of 06/30/12 as of 06/30/12 Cash/E uivs - $113,416 -1.8% $93,267 1.6% Equity $6,578,639 101.8% $5,641,102 98.4% Total $6,465,222 100.0% $5,734,368 100.0% [CC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance by Asset Category Quarter Ending June 30, 2012 carter ■ ACCOUNT ■ INDEX 0.00 -5.00 -4.02 -4.02 -4.02 -5.74 -5.28 -5.39 -10.00 -15.00 EQUITY TOTAL GROSS OF FEES TOTAL NET OF FEES Fiscal Year to Date nn nn ■ ACCOUNT ■ INDEX EQUITY TOTAL GROSS OF FEES TOTAL NET OF FEES Five Years Ammalized 6.00 4.00 2.00 0.00 ■ ACCOUNT ■ INDEX EQUITY TOTAL GROSS OF FEES TOTAL NET OF FEES The red total bar represents the Russell 1000 Growth Index. [CC Capital Management, Inc. 3 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Sector Diversification Quarter Ending June 30, 2012 Top Security Ten Holdings % of equities Return for Quarter AT &T INC. 4.17% 15.68% FORD MOTOR CO. 3.44% - 22.74% IDEX CORP. 2.97% -6.98% AMERICAN EXPRESS CORP. 2.89% 0.97% HEINZ H J CO. 2.80% 2.90% DONALDSON INC. 2.79% -6.32% AFFILIATED MANAGERS GROUP INC. 2.71% -2.01% ALBEMARLE CORP. 2.64% -6.32% GENERAL MILLS INC. 2.59% - 1.50% FIRST REPUBLIC BANK 2.56% 2.03% Sector Sector Contribution % of Portfolio Return for Quarter MATERIALS 7.05% -8.86% INDUSTRIALS 14.95% - 5.92% TELECOMMUNICATIONS 4.17% 15.68% CONSUMER DISCRETIONARY 14.49% - 4.50% CONSUMER STAPLES 8.06% -0.66% ENERGY 8.26% - 12.79% FINANCIALS 13.94% -1.46% HEALTH CARE 13.92% -0.70% INFORMATION TECHNOLOGY 12.91% - 16.98% UTILITIES 2.25% 6.63% [CC Capital Management, Inc. 4 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance by Sectors Quarter Ending June 30, 2012 Index Sector Returns for 2Q12 20.0 10.0 0.0 -10.0 -20.0 �asr� r��4sfr� ( °r� °�°)sVr� O/fo . ifs �4 °r, drs Af° s % dry � Sector Diversification Relative to the Russell 1000 Growth Index 20.0 9.5 10.0 3.2 2.6 1.9 4.5 2 0 0.0 -10.0- -5.2 -20.0- UNDERWEIGHT -18.8 -30.0 f� P � � Sri � o 0 °oo ,ys4 °r• df�r! dJs Ord ifs �l4 ifs r rs�ro dA�� °�fi . fro s o� 4� [CC Capital Management, Inc. 5 OVERWEIGHT 2.1 13 o� PALM BEACH GARDENS POLICE PENSION FUND GROWTH Growth Portfolio Attributes Quarter Ending June 30, 2012 CAPITALIZATION ICC R1000G BETA ICC R1000G YIELD ICC R1000G L ICC R1000G 3 YEAR EPS GROWTH ICC R1000G 5 YEAR EPS GROWTH ICC R1000G 6/30J2012 3 31 2012 1 3 2011 2 30 2011 65.6 58.0 50.2 50.2 108.0 119.5 96.5 88.2 6/30/2012 1.04 1.00 6/3012012 1.90 1.60 613012012 12.0 14.9 6130/2012 31.0 26.0 00/2012 2012 17.0 18.0 3131/2012 1 3 2011 9130/2011 1.04 1.04 1.02 1.00 1.00 1.00 3/31/2012 1 3 2011 9130/2011 1.60 1.40 1.50 1.50 1.60 1.70 3 31 2012 1431/2011 9 30 2011 12.6 12.0 14.6 14.2 13.7 12.5 3/31/2012 1 31 2011 913012011 42.0 46.0 35.0 26.0 20.0 16.0 3131/201 1 31 2011 9/30/2011 27.0 16.0 14.0 17.0 14.0 14.0 TCC Capital Management, Inc. 6 MARKET CAPITALIZATION 150.0 5 . 119 108.0 96.5 88.2 100.0 Iii 58.0 50.2 50.2 50.0 0.0 6/30/2012 3/31/2012 12/31/2011 9/30/2011 BETA l.so 1.04 1.00 1.04 1.00 1.04 1.00 1.021.00 1.00 0.50 0.00 1 6/30/2012 3/31/2012 12/31/2011 9/30/2011 3.o YIELD 2.0 1.90 1.60 1.60 1.50 1.60 1.50 1.70 l.ao 1.0 0.0 6/30/2012 3/31/2012 12/31/2011 9/30/2011 30.0 PRICE/EARNINGS 20.0 14.9 12.0 126 14.2 120 13.7 14.6 125 10.0 0.0 6/30/2012 3/31/2012 12/31/2011 9/30/2011 60.0 3 YR EPS GROWTH 42.0 46.0 40.0 35.0 31.0 26 0 26.0 20.0 20.0 16.0 0.0 6/30/2012 3/31/2012 12/31/2011 9/30/2011 30.0 27.0 5 YR EPS GROWlH 20.0 17.0 18.0 17.0 16.0 1a.o 14.0 14.0 10.0 0.0 -* 6/30/2012 3/31/2012 12/31/2011 9/30/2011 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Summary Quarter Ending June 30, 2012 CASH & EQUIVALENTS Total Cost Market Value Pet. Assets CASH AND EQUIVALENTS 93,267 93,267 1.6 EQUITIES MATERIALS 438,256 397,876 6.9 INDUSTRIALS 844,507 843,779 14.7 TELECOMMUNICATIONS 209,707 235,356 4.1 CONSUMER DISCRETIONARY 851,373 817,078 14.2 CONSUMER STAPLES 457,308 454,539 7.9 ENERGY 566,245 466,235 8.1 FINANCIALS 707,726 786,278 13.7 HEALTH CARE 711,403 784,896 13.7 INFORMATION TECHNOLOGY 659,732 728,135 12.7 UTILITIES 104,297 126,930 2.2 COMMON STOCK TOTAL 5,550,553 5,641,102 98.4 [CC Capital Mmiagemernt, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Appraisal Quarter Ending June 30, 2012 [CC Capital Management, Inc. Unit Total Market Pct. Qttatitity Secttriti Cost Cost Price Valtte Assets CASH AND EQUIVALENTS CASH & CASH EQUIVALENTS $87,639.37 $87,639.37 1.50% DIV CASH ACCRUAL ACCT $5,627.50 $5,627.50 0.10% 93,266.87 $93,266.87 1.60 0 COMMON STOCK MATERIALS 2500 ALBEMARLE CORP $54.71 $136,765.27 $59.64 $149,100.00 2.60% 4000 FREEPORT MCMORAN COP & GOL] $45.77 $183,075.78 $34.07 $136,280.00 2.40% 700 MONSANTO CO $78.14 $54,700.66 $82.78 $57,946.00 1.00% 1000 ROCK -TENN COQ -IPANY CL -A $63.71 $63,714.09 $54.55 $54,550.00 1.00% 438,255. 6.00 6.90% INDUSTRIALS 300 CATERPILLAR TRACTOR CO $101.36 $30,406.92 $84.91 $25,473.00 0.40% 4400 DELTA AIR LINES, INC $8.42 $37,052.32 $10.95 $48,180.00 0.80% 4700 DONALDSON INC $33.54 $157,661.00 $33.37 $156,839.00 2.70% 1800 EMERSON ELECTRIC CO. $47.00 $84,597.48 $46.58 $83,844.00 1.50% 6600 GRAFTECH INTERNATIONAL LTD $11.96 $78,937.98 $9.65 $63,690.00 1.10% 4300 IDEX CORP $40.63 $174,688.10 $38.98 $167,614.00 2.90% 850 KANSAS CITY SOUTHERN IND $68.42 $58,153.86 $69.56 $59,126.00 1.00% 3100 LINCOLN ELECTRIC HLDGS $39.86 $123,570.97 $43.79 $135,749.00 2.40% 11200 SOUTHWEST AIRLINES CO. $8.88 $99,438.62 $9.22 $103,264.00 1.80% $844,507.25 $843,779.00 14.70 a TELECOMMUNICATIONS 6600 AT &T INC. $31.77 $209,706.78 $35.66 $235,356.00 4.10% ,706.78 $235,356.00 4.10% CONSUMER DISCRETIONARY 1750 BRINKER INTERNATIONAL $26.61 $46,564.21 $31.87 $55,772.50 1.00% 4000 CBS CORP. CLASS B $31.60 $126,388.56 $32.78 $131,120.00 2.30% 20200 FORD 1\,IOTOR CO. $11.72 $236,814.32 $9.59 $193,718.00 3.40% 3900 HASBRO INC $44.18 $172,311.55 $33.87 $132,093.00 2.30% 2300 HOME DEPOT $38.20 $87,864.87 $52.99 $121,877.00 2.10% 6500 INTERPUBLIC GROUP COMPANIES $10.49 $68,195.22 $10.85 $70,525.00 1.20% 2100 STARBUCKS CORP $53.92 $113,234.01 $53.32 $111,972.00 2.00% 817,077.50 14.2o o CONSUMER STAPLES 1100 COCA COLA COMPANY $70.18 $77,202.29 $78.19 $86,009.00 1.50% 3800 GENERAL MILLS INC. $39.77 $151,144.08 $38.54 $146,452.00 2.60% 2900 HEINZ H J CO $53.45 $154,995.43 $54.38 $157,702.00 2.80% 1300 INGREDION INC $56.90 $73,966.49 $49.52 $64,376.00 1.10% $457,308.29 $454,539.00 7.5-00/o ENERGY 1400 ATWOOD OCEANICS INC $29.33 $41,061.08 $37.84 $52,976.00 0.90% 500 CARBO CERAMICS INC $126.38 $63,188.91 $76.73 $38,365.00 0.70% 300 CONCHO RESOURCES INC $94.25 $28,276.42 $85.12 $25,536.00 0.40% 800 CONOCOPHILLIPS $46.87 $37,492.76 $55.88 $44,704.00 0.80% 1400 EXXON ivIOBIL CORP. $81.89 $114,639.59 $85.57 $119,798.00 2.10% 1800 PHILLIPS 66 $31.53 $56,750.64 $33.24 $59,832.00 1.00% 1900 WALTER ENERGY INC $92.14 $175,069.27 $44.16 $83,904.00 1.50% 1000 WHTING PETROLEUM CORP $49.77 $49,766.06 $41.12 $41,120.00 0.70% $566,244.73 8. o [CC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Appraisal Quarter Ending June 30, 2012 [CC Capital Management, Inc. Unit Total Market Pct. Quantity Security Cost Cost Price Value Assets FINANCIALS 1400 AFFILIATED MANAGERS GROUP II` $88.73 $124,227.12 $109.45 $153,230.00 2.70% 2800 AMERICAN EXPRESS CORP. $53.59 $150,050.04 $58.21 $162,988.00 2.80% 500 BLACKROCK WC $176.86 $88,431.96 $169.82 $84,910.00 1.50% 4300 FIRST REPUBLIC BANK $25.80 $110,926.28 $33.60 $144,480.00 2.50% 1000 VISA INC -CLASS A SHARES $118.31 $118,313.60 $123.63 $123,630.00 2.20% 3500 WELLS FARGO AND CO. $33.08 $115,776.50 $33.44 $117,040.00 2.00% 786,278.00 13.70 0 HEALTH CARE 1200 ABBOTT LAB COM $62.27 $74,724.24 $64.47 $77,364.00 1.30% 1500 BECTON DICKINSON & CO $67.54 $101,311.58 $74.75 $112,125.00 2.00% 3200 CARDINAL HEALTH INC $41.20 $131,833.40 $42.00 $134,400.00 2.30% 2800 CIGNA CORP $29.53 $82,673.39 $44.00 $123,200.00 2.10% 2800 ELI LILLY AND COMPANY $40.35 $112,989.24 $42.91 $120,148.00 2.10% 1300 MCKESSON HBOC INC. $91.25 $118,621.51 $93.75 $121,875.00 2.10% 2400 ST JUDE MEDICAL INC $37.19 $89,249.44 $39.91 $95,784.00 1.70% 711,402.80 $784,896.00 13.70% INFORMATION TECHNOLOGY 150 APPLE COMPUTER INC $294.47 $44,171.00 $584.00 $87,600.00 1.50% 4800 EMC CORP $18.36 $88,114.20 $25.63 $123,024.00 2.10% 700 IBM $196.49 $137,543.84 $195.58 $136,906.00 2.40% 18800 MICRON TECHNOLOGY INC $6.06 $113,869.85 $6.31 $118,628.00 2.10% 4600 MICROSOFT CORP. $27.48 $126,394.08 $30.59 $140,714.00 2.50% 8300 SYTMANTEC CORP $18.03 $149,639.25 $14.61 $121,263.00 2.10% $659,732,22 $728,135.00 12.70% UTILITIES 3000 ONEOK INC $34.77 $104,297.20 $42.31 $126,930.00 2.20% $104,297.20 $126,930.00 2.20% COMMON STOCK Total $5,550,553.31 $5,641,101.50 98.40% TOTAL PORTFOLIO $5,643,820.18 $5,734,368.37 100.00% [CC Capital Management, Inc. ICC Capital Management BROKER COMMISSION SUMMARY REPORT PALM BEACH GARDENS POLICE PENSION FUND GROWTH Front 03 -31 -12 To 06-30 -12 Trade Tran Security Unit Comm Date Code Symbol Security Amount Quantity Price Commission Per Shr EDGETRADE 2 04 -02 -12 Sell A,MG AFFILIATED MANAGERS GROUP 11,341.24 100.00 113.41 1.00 0.01 INC 04 -02 -12 Sell ALB ALBEMARLECORP 6,503.85 100.00 65.04 1.00 0.01 04 -02 -12 Sell AYP AiMERICAN EXPRESS CORP. 5,816.36 100.00 58.17 1.00 0.01 04 -02 -12 Sell T AT &T INC. 9,455.78 300.00 31.52 3.00 0.01 04 -02 -12 Sell ATW ATWOOD OCEANICS INC 4,520.39 100.00 45.20 1.00 0.01 04 -02 -12 Sell BDY BECTON DICKINSON & CO 7,820.32 100.00 78.20 1.00 0.01 04 -02 -12 Sell BLK BLACKROCK INC 102,612.70 500.00 205.23 5.00 0.01 04 -02 -12 Sell EAT BRINKER INTERNATIONAL 8,327.81 300.00 27.76 3.00 0.0E 04 -02 -12 Sell CAII CARDINAL HEALTH INC 8,595.80 200.00 42.98 2.00 0.01 04 -02 -12 Sell CAT CATERPILLAR TRACTOR CO 10,781.75 100.00 107.82 1.00 0.01 04 -02 -12 Sell Cl CIGNA CORP 4,954.88 100.00 49.55 1.00 0.0€ 04 -02 -12 Sell KO COCA COLA COMPANY 7,409.33 100.00 74.10 1.00 0.01 04 -02 -12 Sell CYO CONCHO RESOURCES INC 30,941.30 300.00 103.14 3.00 0.01 04 -02 -12 Sell CYO CONCHO RESOURCES INC 10,295.76 100.00 102.96 1.00 0.01 04.02 -12 Sell CVs CVS CAREMARK CORP 4,503.89 100.00 45.04 1.00 0.01 04 -02.12 Sell DAL DELTA AIR LINES, INC 1,996.95 200.00 9.98 2.00 0.01 04 -02 -12 Sell DC1 DONALDSON INC 7,211.83 200.00 36.06 2.00 0.01 04 -02 -12 Sell EbIC ElvIC CORP 5,967.86 200.00 29.84 2.00 0.01 04 -02 -12 Sell XOM EXXON MOBIL CORP. 8,743.30 100.00 87.43 1.00 0.01 04 -02 -12 Sell FRC FIRST REPUBLIC BANK 6,623.85 200.00 33.12 2.00 0.01 04 -02 -12 Sell F FORD MOTOR CO. 12,579.71 1,000.00 12.58 10.00 0.01 04.02 -12 Sell FCX FREEPORT MCNIORAN COP & 7,864.82 200.00 39.32 2.00 0.01 GOLD 04 -02 -12 Sell GIS GENERAL MILLS INC. 7,884.82 200.00 39.42 2.00 0.01 04.02.12 Sell GTI GRAFTECH INTERNATIONAL LTD 3,650.91 300.00 12.17 3.00 0.01 04 -02.12 Sell HAS HASBROII`TC 7,496.09 200.00 37.48 2.00 0.01 04 -02 -12 Sell HD HOME DEPOT 10,005.77 200.00 50.03 2.00 0.01 04 -02 -12 Sell IEY IDEX CORP 8,512.80 200.00 42.56 2.00 0.01 04 -02 -12 Sell IPG € 4TERPUBLIC GROUP COMPANIES 3,368.92 300.00 11.23 3.00 0.01 INC. 04 -02 -12 Sell 1DSU JDS UNIPHASE CORP 1,451.97 100.00 14.52 1.00 0.01 04 -02 -12 Sell JDSU JDS UNIPHASE CORP 2,903.93 200.00 14.52 2.00 0.01 04 -02 -12 Sell LECO LINCOLN ELECTRIC HLDGS 4,590.39 100.00 45.91 1,00 0.01 04 -02 -12 Sell MU MICRON TECHNOLOGY INC 7,344.82 900.00 8.16 9.00 0.01 04 -02 -12 Sell ,MSFT MICROSOFT CORP. 6,477.85 200.00 32.39 2.00 0.01 04 -02 -12 Sell NAV NAVISTAR INTERNATIONAL 3,085.81 200.00 40.43 2.00 0.01 04.02.12 Sell NVE NV ENERGY INC 3,207.92 200.00 €6.04 2.00 0.01 04 -02 -12 Sell OKE ONEOKINC 8,196.81 100.00 81.97 1.00 0.01 04 -02 -12 Sell PH PARKER - HANNIFIN CORP. 8,593.80 100.00 35.94 1.00 0.01 04 -02 -12 Sell LUV SOUTHR'EST AIRLINES CO. 4,129.90 500.00 8.26 5.00 0.01 04 -02 -12 Sell STJ ST JUDE MEDICAL INC 8,791.80 200.00 43.96 2.00 0.01 04 -02 -12 Sell SYNC SYNIANTEC CORP 7,495.83 400.00 18.74 4.00 0.01 04 -02 -12 Sell TKR TIMKEN CO. 5,€68.38 100.00 51.69 1.00 0,01 04.02 -12 Sell WLT WALTER ENERGY INC 6,155.86 100.00 61.56 1.00 0.01 04 -02 -12 Sell WPI WATSON PHARMACEUTICALS 6,717.84 100.00 67.18 1.00 0.01 04 -02 -12 Sell WLL WHTING PETROLEUM CORP 5,536.87 100.00 55.37 1.00 0.01 04 -03 -12 Sell CYO CONCHO RESOURCES INC 81,826.08 800.00 102.28 8,00 0.01 04 -03 -I2 Sell CXO CONCHO RESOURCES INC 30,684.78 300.00 102.23 3.00 0.01 04 -03 -12 Buy HNZ HEINZ H J CO 128,531.28 2,400.00 53.55 24.00 0.01 04.05 -12 Sell KO COCA COLA COMPANY 7,328.83 100.00 73.29 1.00 0.01 04.05 -12 Sell HD HOME DEPOT 30,359.31 600.00 50.60 6.00 0.01 04 -16 - €2 Buy T AT &T INC. 18,392.22 600.00 30.65 6.00 0.01 04 -16 -12 Sell HD HOME DEPOT 51,692.34 1,000.00 51.69 10.00 0.01 04 -19 -12 Sell CAT CATERPILLAR TRACTOR CO 64,495.85 600.00 107.49 6.00 0.01 10 ICC Capital Management BROKER COMMISSION SUMMARY REPORT PALMBEACH GARDENS POLICE PENSION FUND GROWTH Front 03 -31 -12 To 06 -30 -12 Trade Tran Security Unit Comm Date Code Symbol Security Amount Quantity Price Commission Per Shr 04 -19 -12 Buy CPO.OLD CORN PRODUCTS INTL INC 73,966.49 1,300.00 56.90 13.00 0.01 04 -19 -12 Sell CVS. CVS CAREMARK CORP 17,370.29 400.00 43.43 4.00 0.01 04 -19 -12 Sell CVS CVS CAREMARK CORP 17,370.29 400.00 43.43 4.00 0.01 04 -19 -12 Sell CVS CVS CAREMARK CORP 13,027.72 300.00 43.43 3.00 0.01 04 -19 -12 Sell CVS CVS CAREMARK CORP 8,68514 200.00 43.43 2.00 0.01 04.19 -12 Sell CVS CVS CAREMARK CORP 8,685.15 200.00 43.43 2.00 0.01 04 -19 -12 Sell CVS CVS CAREMARK CORP 4,342.57 100.00 43.43 1.00 0.01 04 -19 -12 Sell CVS CVS CAREMARK CORP 13,027.72 300.00 43.43 3.00 0.01 04 -19 -12 Sell CVS CVS CAREMARK CORP 21,712.86 500.00 43.43 5.00 0.01 04 -19 -12 Sell CVS CVS CAREMARK CORP 13,027.72 300.00 43.43 3.00 0.01 04 -20 -12 Sell TTC TORO CO 63,905.58 900.00 71.01 9.00 0.01 04 -20 -12 Sell TTC TORO CO 7,100.62 100.00 71.01 1.00 Oki 04.23 -12 Sell EAT BRINKER INTERNATIONAL 39,300.32 1,300.00 30.23 13.00 0.01 04 -24 -12 Buy SYMC SYMANTEC CORP 11,295.97 700.00 16.14 7.00 0.01 04 -25 -12 Sell AAPL APPLE COMPUTER INC 60,969.95 100.00 609.70 1.00 0.01 04 -25 -12 Buy ENIC E,NIC CORP 22,413.20 800.00 23.02 8.00 0.01 04 -26-12 Buy HNZ HEINZ H J CO 26,464.15 500.00 52.93 5.00 0.01 04 -26-12 Buy MCK NICKESSON HBOC INC. 64,263.35 700.00 91.81 7.00 0.01 04 -26 -12 Sell WPI WATSON PHARMACEUTICALS 52,081.00 700.00 74.40 7.00 0.01 04 -26 -12 Sell WPI WATSON PHARMACEUTICALS 7,440.14 100.00 74.40 1.00 0.01 04 -26 -12 Sell WPI WATSON PHARMACEUTICALS 81,841.57 1,100.00 74.40 11.00 0.01 04 -26 -12 Sell WPI WATSON PHARMACEUTICALS 14,880.29 200.00 74.40 2.00 0.01 04 -26 -12 Sell WPI WATSON PHARMACEUTICALS 22,320.43 300.00 74.40 3.00 0.01 05 -01 -12 Buy T AT &T INC. 26,613.92 800.00 33.27 8.00 0.01 05 -01 -12 Buy MCK MCKESSON HBOC INC. 54,357.66 600.00 90.60 6.00 0.01 05 -01 -12 Buy NTAP NETAPP INC 28,509.53 700.00 40.73 7.00 0.01 05 -01 -12 Sell STJ ST JUDE MEDICAL INC 89,881.98 2,300.00 39.08 23.00 0.01 05 -04 -12 Buy SBUX STARBUCKS CORP 61,148.89 1,100.00 55.59 11.00 0.01 05 -07 -12 Buy GIs GENERAL MILLS INC. 7,707.48 200.00 38.54 2.00 0.01 05 -07 -12 Sell HD HOME DEPOT 61,756.37 1,200.00 51.46 12.00 0.01 05 -08 -12 Buy CBS CBS CORP. CLASS B 58,636.62 1,800.00 32.58 18.00 0.01 05 -09 -12 Buy SBUX STARBUCKS CORP 5,426.33 100.00 54.26 1.00 0.01 05 -10 -12 Buy ABT ABBOTT I.AB COM 74,724.24 1,200.00 62.27 12.00 0.01 05 -16 -12 Buy PSX PHILLIPS 66 45,060.96 1,400.00 32.19 14.00 0.01 05 -18 -12 Buy SYMC SYMANTEC CORP 2,974.34 200.00 14.87 2.00 0.01 05 -24 -12 Sell NTAP NETAPP INC 4,279.49 150.00 28.53 1.50 0.01 05 -24 -12 Sell NTAP NETAPP INC 14,264.98 500.00 23.53 5.00 0.01 05 -24 -12 Sell NTAP NETAPP INC 2,853.00 100.00 28.53 1.00 0.01 05 -24 -12 Sell NTAP NETAPP INC 19,970.97 700.00 28.53 7.00 0.01 05 -29 -12 Sell CAT CATERPILLAR TRACTOR CO 18,629.94 200.00 93.15 2.00 0.01 06 -01 -12 Buy CBS CBS CORP. CLASS B 55,062.90 1,800.00 30.59 18.00 0.01 06 -05 -12 Buy SBUX STARBUCKS CORP 46,658.79 900.00 51.84 9.00 0.01 06 -07 -12 &ry NAV NAVISTAR INTERNATIONAL 29,871.52 1,400.00 21.34 14.00 0.0E 06 -11 -12 Sell NAV NAVISTAR INTERNATIONAL 26,023.90 900.00 28.92 9.00 0.0E 06 -12 -12 Buy EMR EMERSON ELECTRIC CO. 84,597.48 1,300.00 47.00 18.00 0.01 06 -12 -12 Sell NAV NAVISTAR INTERNATOONAL 53,402.94 2,050.00 26.05 20.50 0.01 06 -12 -€2 Sell NAV NAVISTAR INTERNATIONAL 10,420 .09 400.00 26.05 4.00 0.01 06 -12 -12 Sell NAV NAVISTAR INTERNATIONAL 36,470.30 1,400.00 26.05 14.00 0.01 06 -12 -12 Buy STJ ST JUDE NIEDICAL INC 32,261.04 900.00 35.85 9.00 0.01 06 -13 -12 Buy CBS CBS CORP. CLASS B 12,689.04 400.00 31.72 4.00 0.01 06 - €5 -12 Buy KSU KANSAS CITY SOUTHERN IND 58,153.86 350.00 68.42 8.50 0.01 06 -15 -E2 Buy V VISA INC -CLASS A SHARES 118,313.60 1,000.00 1 18.31 10.00 0.01 06 -19 -12 Sell NVE NV ENERGY INC 33,356.22 1,900.00 17.56 19.00 0.01 06 -19 -12 Sell NVE NV ENERGY INC 26,333.86 1,500.00 17.56 15.00 0.01 06 -19 -12 Sell NVE NV ENERGY INC 8,777.95 500.00 17.56 5.00 0.01 06 -19.12 Buy WFC WELLS FARGO AND CO. 115,776.50 3,500.00 33.08 35.00 0.01 I1 ICC Capital Management BROKER COMMISSION SUMMARY REPORT PALM BEACH GARDENS POLICE PENSION FUND GROWTH Front 03 -31 -12 To 06 -30 -12 "Trade Tran Security Unit Comm Date Code Symbol Security Amount Quantity Price Commission Per Shy 06 -20 -12 Sell KO COCA COLA COMPANY 82,799.43 1,100.00 75.27 11.00 0.01 06 -21 -12 Sell XOM EXXON MOBIL CORP. 8,239.93 100.00 82.40 1.00 0.01 06-21-12 Sell XOM EXXON MOBIL CORP. 32,959.74 400.00 82.40 4.00 0.01 06 -21 -12 Sell XOM EXXON MOBIL CORP. 24,719.81 300.00 82.40 3.00 0.01 06 -21 -12 Sell JDSU JDS UNIPHASE CORP 9,318.84 900.00 10.35 9.00 0.01 06 -21 -12 Sell JDSU JDS UNIPHASE CORP 10,354.27 1,000.00 10.35 10.00 0.01 06 -21 -12 Sell JDSU JDS UNIPHASE CORP 12,425.12 1,200.00 10.35 12.00 0.01 06 -21 -12 Sell JDSU JDS UNIPHASE CORP 5,177.13 500.00 10.35 5.00 0.01 06 -21 -12 Sell JDSU JDS UNIPHASE CORP 2,070.85 200.00 10.35 2.00 0.01 06 -21 -12 Sell JDSU JDS UNIPHASE CORP 21,743.96 2,100.00 10.35 21.00 0.01 06 -21 -12 Sell JDSU JDS UNIPHASE CORP 8,283.42 800.00 10.35 8.00 0.01 06 -21 -12 Buy IVION MONSANTOCO 54,700.66 700.00 78.14 7.00 _ 0.01 3,097,204.13 71,350.00 713.50 0.01 ICAP CORPORATES 04 -25 -12 Sell TKR TIMKEN CO. 103,469.21 1,900.00 54.46 38.00 0.02 04 -25 -12 Sell 1'KR TIMKEN CO. 38,120.23 700.00 54.46 14.00 0.02 04 -25 -12 Sell TKR TIMKEN CO. 21,782.99 400.00 54.46 8.00 0.02 163,372,43 3,000.00 60.00 0.02 THE GRISWOLD COMPANY 04 -24 -12 Sell PH PARKER - HANNIFIN CORP. 34,835.70 400.00 87.09 16.00 0.04 04 -24 -12 Sell PH PARKER - HANNIFIN CORP. 43,544.62 500.00 87.09 20.00 0.04 04 -24 -12 Sell PH PARKER- HANNIFIN CORP. 43,544.62 500.00 87.09 20.00 0.04 04 -24 -12 Sell PH PARKER - HANNIFIN CORP. 17,417.85 200.00 87.09 8.00 0.04 06 -04 -12 Sell EAT BRINKER INTERNATIONAL 81,931.01 2,700.00 30.34 108.00 0.04 06.05 -12 Buy LLY ELI LILLY AND COMPANY 112,989.24 2,800.00 40.35 112.00 0.04 06 -21 -12 Buy IBM IBM 137,543.84 700.00 196.49 28.00 0.04 471,806.88 7,800.00 312.00 0.04 82,150.00 1,085.50 0.01 12 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND GROWTH From 03 -31 -12 To 06 -30 -12 Trade Settle Unit Date Date Quantity Security Price Amount PURCHASES 05 -10 -12 05 -15 -12 1,200.00 ABBOTT LAB COM 62.27 74,724.24 04 -16 -12 04 -19 -12 600.00 AT &T INC. 30.65 18,392.22 05 -01 -12 05 -04 -12 800.00 AT &T INC. 33.27 26,613.92 05 -08 -12 05 -11 -12 1,800.00 CBS CORP. CLASS B 32.58 58,636.62 06 -01 -12 06 -06 -12 1,800.00 CBS CORP. CLASS B 30.59 55,062.90 06 -13 -12 06 -18 -12 400.00 CBS CORP. CLASS B 31.72 12,689.04 04 -19 -12 04 -24 -12 1,300.00 CORN PRODUCTS INTL INC 56.90 73,966.49 06 -05 -12 06 -08 -12 2,800.00 ELI LILLY AND COMPANY 40.35 112,989.24 04 -25 -12 04 -30 -12 800.00 EMC CORP 28.02 22,413.20 06 -12 -12 06 -15 -12 1,800.00 EMERSON ELECTRIC CO. 47.00 84,597.48 05 -07 -12 05 -10 -12 200.00 GENERAL MILLS INC. 38.54 7,707.48 04 -03 -12 04 -09 -12 2,400.00 HEINZ H J CO 53.55 128,531.28 04 -26 -12 05 -01 -12 500.00 HEINZ H J CO 52.93 26,464.15 06 -21 -12 06 -26 -12 700.00 IBIVI 196.49 137,543.84 06 -15 -12 06 -20 -12 850.00 KANSAS CITY SOUTHERN IND 68.42 58,153.86 04 -26 -12 05 -01 -12 700.00 MCKESSON HBOC INC. 91.81 64,263.85 05 -01 -12 05 -04 -12 600.00 MCKESSON HBOC INC. 90.60 54,357.66 06 -21 -12 06 -26 -12 700.00 MONSANTO CO 78.14 54,700.66 06 -07 -12 06 -12 -12 1,400.00 NAVISTAR INTERNATIONAL 21.34 29,871.52 05 -01 -12 05 -04 -12 700.00 NETAPP INC 40.73 28,509.53 05 -16 -12 05 -21 -12 1,400.00 PHILLIPS 66 32.19 45,060.96 06 -12 -12 06 -15 -12 900.00 ST JUDE MEDICAL INC 35.85 32,261.04 05 -04 -12 05 -09 -12 1,100.00 STARBUCKS CORP 55.59 61,148.89 05 -09 -12 05 -14 -12 100.00 STARBUCKS CORP 54.26 5,426.33 06 -05 -12 06 -08 -12 900.00 STARBUCKS CORP 51.84 46,658.79 04 -24 -12 04 -27 -12 700.00 SYMAINTEC CORP 16.14 11,29597 05 -18 -12 05 -23 -12 200.00 SYMANTEC CORP 14.87 2,974.34 06 -15 -12 06 -20 -12 1,000.00 VISA INC -CLASS A SHARES 118.31 118,313.60 06 -19 -12 06 -22 -12 3,500.00 WELLS FARGO AND CO. 33.08 115,776.50 1,569,105.60 SALES 04 -02 -12 04 -05 -12 100.00 AFFILIATED MANAGERS GROUP 113.41 11,341.24 INC 04 -02 -12 04 -05 -12 100.00 ALBEMARLE CORP 65.04 6,503.85 04 -02 -12 04 -05 -12 100.00 AMERICAN EXPRESS CORP. 58.17 5,816.86 04 -25 -12 04 -30 -12 100.00 APPLE COMPUTER INC 609.70 60,969.95 04 -02 -12 04 -05 -12 300.00 AT &T INC. 31.52 9,455.78 04 -02 -12 04 -05 -12 100.00 ATWOOD OCEANICS INC 45.20 4,520.39 04 -02 -12 04 -05 -12 100.00 BECTON DICKINSON & CO 78.20 7,820.32 04 -02 -12 04 -05 -12 500.00 BLACKROCK INC 205.23 102,612.70 04 -02 -12 04 -05 -12 300.00 BRINKERINTERNATIONAL 27.76 8,327.81 €3 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND GROWTH Fi-ont 03 -31 -12 To 06 -30 -12 Trade Settle Unit Date Date Quantity Security Price Amount 04 -23 -12 04 -26 -12 1,300.00 BRNKER INTERNATIONAL 30.23 39,300.32 06 -04 -12 06 -07 -12 2,700.00 BRINKER INTERNATIONAL 30.34 81,931.01 04 -02 -12 04 -05 -12 200.00 CARDINAL HEALTH INC 42.98 8,595.80 04 -02 -12 04 -05 -12 100.00 CATERPILLAR TRACTOR CO 107.82 10,781.75 04 -19 -12 04 -24 -12 600.00 CATERPILLAR TRACTOR CO 107.49 64,495.85 05 -29 -12 06 -01 -12 200.00 CATERPILLAR TRACTOR CO 93.15 18,629.94 04 -02 -12 04 -05 -12 100.00 CIGNA CORP 49.55 4,954.88 04 -02 -12 04 -05 -12 100.00 COCA COLA COMPANY 74.10 7,409.83 04 -05 -12 04 -11 -12 100.00 COCA COLA COMPANY 73.29 7,328.83 06 -20 -12 06 -25 -12 1,100.00 COCA COLA COMPANY 75.27 82,799.43 04 -02 -12 0405 -12 300.00 CONCHO RESOURCES INC 103.14 30,941.30 04 -02 -12 04 -05 -12 100.00 CONCHO RESOURCES INC 102.96 10,295.76 04 -03 -12 04 -09 -12 800.00 CONCHO RESOURCES INC 102.28 81,826.08 04 -03 -12 04 -09 -12 300.00 CONCHO RESOURCES INC 102.28 30,684.78 04 -02 -12 04 -05 -12 100.00 CVS CAREMARK CORP 45.04 4,503.89 04 -19 -12 04 -24 -12 400.00 CVS CAREMARK CORP 43.43 17,370.29 04 -19 -12 04 -24 -12 400.00 CVS CAREMARK CORP 43.43 17,370.29 04 -19 -12 04 -24 -12 300.00 CVS CAREMARK CORP 43.43 13,027.72 04 -19 -12 04 -24 -12 200.00 CVS CAREMARK CORD 43.43 8,685.14 04 -19 -12 04 -24 -12 200.00 CVS CAREMARK CORD 43.43 8,685.15 04 -19 -12 04 -24 -12 100.00 CVS CAREMARK CORP 43.43 4,342.57 04 -19 -12 04 -24 -12 300.00 CVS CAREMARK CORD 43.43 13,027.72 04 -19 -12 04 -24 -12 500.00 CVS CAREMARK CORP 43.43 21,712.86 04 -19 -12 04 -24 -12 300.00 CVS CAREMARK CORP 43.43 13,027.72 04 -02 -12 04 -05 -12 200.00 DELTA AIR LINES, INC 9.98 1,996.95 04 -02 -12 04 -05 -12 200.00 DONALDSON NC 36.06 7,211.83 0402 -12 0405 -12 200.00 EMC CORP 29.84 5,967.86 04 -02 -12 04 -05 -I2 100.00 EXXON MOBIL CORP. 87.43 8,743.30 06 -21 -12 06 -26 -12 100.00 EXXON MOBIL CORP. 82.40 8,239.93 06 -21 -12 06 -26 -12 400.00 EXXON MOBIL CORP. 82.40 32,959.74 06 -21 -12 06 -26 -12 300.00 EXXON MOBIL CORP. 82.40 24,719.81 0402 -12 04 -05 -12 200.00 FIRST REPUBLIC BANK 33.12 6,623.85 04 -02 -I2 04 -05 -12 1,000.00 FORD MOTOR CO. 12.58 12,579.71 04 -02 -12 04 -05 -12 200.00 FREEPORT MCMORAN COP & 39.32 7,864.82 GOLD 04 -02 -12 0405 -12 200.00 GENERAL MILLS INC. 39.42 7,884.82 04 -02 -12 0405 -12 300.00 GRAFTECH INTERNATIONAL LTD 12.17 3,650.91 04 -02 -12 04 -05 -12 200.00 HASBRO NC 37.48 7,496.09 04 -02 -12 04 -05 -12 200.00 HOME DEPOT 50.03 10,005.77 04 -05 -12 04 -11 -12 600.00 HOME DEPOT 50.60 30,359.31 04 -16 -12 04 -19 -12 1,000.00 HOME DEPOT 51.69 51,692.34 05 -07 -12 05 -10 -12 1,200.00 HOME DEPOT 51.46 61,756.37 04 -02 -12 04 -05 -12 200.00 IDEX CORP 42.56 8,512.80 14 ICC Capital Management PURCHASE AND SALE PALilf BEACH GARDENS POLICE PENSION FUND GROWTH From 03 -31 -12 To 06 -30 -12 Trade Settle Unit Date Date Quantity Security Price Amount 04 -02 -12 04 -05 -12 300.00 INTERPUBLIC GROUP 11.23 3,368.92 COMPANIES INC. 04 -02 -12 04 -05 -12 100.00 JDS UNIPHASE CORP 14.52 1,451.97 04 -02 -12 04 -05 -12 200.00 JDS UNIPHASE CORP 14.52 2,903.93 06 -21 -12 06 -26 -12 900.00 JDS UNIPHASE CORP 10.35 9,318.84 06 -21 -12 06 -26 -12 1,000.00 JDS UNIPHASE CORP 10.35 10,354.27 06 -21 -12 06 -26 -12 1,200.00 JDS UNIPHASE CORP 10.35 12,425.12 06 -21 -12 06 -26 -12 500.00 JDS UNIPHASE CORP 10.35 5,177.13 06 -21 -12 06 -26 -12 200.00 JDS UNIPHASE CORP 10.35 2,070.85 06 -21 -12 06 -26 -12 2,100.00 JDS UNIPHASE CORP 10.35 21,743.96 06 -21 -12 06 -26 -12 800.00 JDS UNIPHASE CORP 10.35 8,283.42 04 -02 -12 04 -05 -12 100.00 LINCOLN ELECTRIC HLDGS 45.91 4,590.89 04 -02 -12 04 -05 -12 900.00 MICRON TECHNOLOGY INC 8.16 7,344.82 04 -02 -12 04 -05 -12 200.00 MICROSOFT CORP. 32.39 6,477.85 04 -02 -12 04 -05 -12 200.00 NAVISTAR INTERNATIONAL 40.43 8,085.81 06 -11 -12 06 -14 -12 900.00 NAVISTAR INTERNATIONAL 28.92 26,023.90 06 -12 -12 06 -15 -12 2,050.00 NAVISTAR INTERNATIONAL 26.05 53,402.94 06 -12 -12 06 -15 -12 400.00 NAVISTAR INTERNATIONAL 26.05 10,420.09 06 -12 -12 06 -15 -12 1,400.00 NAVISTAR INTERNATIONAL 26.05 36,470.30 05 -24 -12 05 -30 -12 150.00 NETAPP INC 28.53 4,279.49 05 -24 -12 05 -30 -12 500.00 NETAPP INC 28.53 14,264.98 05 -24 -12 05 -30 -12 100.00 NETAPP INC 28.53 2,853.00 05 -24 -12 05 -30 -12 700.00 NETAPP INC 28.53 19,970.97 04 -02 -12 04 -05 -12 200.00 NV ENERGY INC 16.04 3,207.92 06 -19 -12 06 -22 -12 1,900.00 NV ENERGY INC 17.56 33,356.22 06 -19 -12 06 -22 -12 1,500.00 NV ENERGY INC 17.56 26,333.86 06 -19 -12 06 -22 -12 500.00 NV ENERGY INC 17.56 8,777.95 04 -02 -12 04 -05 -12 100.00 ONEOK INC 81.97 8,196.81 04 -02 -12 04 -05 -12 100.00 PARKER - HANNIFIN CORP. 85.94 8,593.80 04 -24 -12 04 -27 -12 400.00 PARKER - HANNIFIN CORP. 87.09 34,835.70 04 -24 -12 04 -27 -12 500.00 PARKER - HANNIFIN CORP. 87.09 43,544.62 04 -24 -12 04 -27 -12 500.00 PARKER - HANNIFIN CORP. 87.09 43,544.62 04 -24 -12 04 -27 -12 200.00 PARKER - HANNIFIN CORP. 87.09 17,417.85 04 -02 -12 04 -05 -12 500.00 SOUTHWEST AIRLINES CO. 8.26 4,129.90 04 -02 -12 04 -05 -12 200.00 ST JUDE MEDICAL INC 43.96 8,791.80 05 -01 -12 05 -04 -12 2,300.00 ST JUDE MEDICAL INC 39.08 89,881.98 04 -02 -12 04 -05 -12 400.00 SYMANTEC CORP 18.74 7,495.83 04 -02 -12 04 -05 -12 100.00 TIMKEN CO. 51.69 5,168.88 04 -25 -12 04 -30 -12 1,900.00 TIMKEN CO. 54.46 103,469.21 04 -25 -12 04 -30 -12 700.00 TIMKEN CO. 54.46 38,120.23 04 -25 -12 04 -30 -12 400.00 TIMKEN CO. 54.46 21,782.99 04 -20 -12 04 -25 -12 900.00 TORO CO 71.01 63,905.58 04 -20 -12 04 -25 -12 100.00 TORO CO 71.01 7,100.62 04 -02 -12 04 -05 -12 100.00 WALTER ENERGY INC 61.56 6,155.86 04 -02 -12 04 -05 -12 100.00 WATSON PHARMACEUTICALS 67.18 6,717.84 15 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND GR 0WTH Froni 03 -31 -12 To 06 -30 -12 Trade Settle Unit Date Date Quantity Security Price 04 -26 -12 05 -01 -12 700.00 WATSON PHARMACEUTICALS 74.40 04 -26 -12 05 -01 -12 100.00 WATSON PHARMACEUTICALS 74.40 04 -26 -12 05 -01 -12 1,100.00 WATSON PHARMACEUTICALS 74.40 04 -26 -12 05 -01 -12 200.00 WATSON PHARMACEUTICALS 74.40 04 -26 -12 05 -01 -12 300.00 WATSON PHARMACEUTICALS 74.40 04 -02 -12 04 -05 -12 100.00 WHTING PETROLEUM CORP 55.37 16 Amount 52,081.00 7,440.14 81,841.57 14,880.29 22,320.43 5,536.87 2,163,277.84 ICC Capital Management REALIZED GAINS AND LOSSES PALIV BEACH GARDENS POLICE PENSION FUND GROWTH From 03 -31 -12 Through 06 -30 -12 Open Date Close Date Quantity Security. Cost Basis Proceeds Gain Or Loss Short Term Long'Ferm 12 -01 -11 04 -02 -12 500.00 BLACKROCK INC 83,981.15 102,612.70 18,631.55 09 -20 -10 04 -02 -12 300.00 CONCHO RESOURCES INC 19,406.07 30,941.30 11,535.23 11 -22 -10 04 -02 -12 100.00 ALBEMARL.ECORP 5,387.79 6,503.85 1,116.06 10 -27 -10 04 -02 -12 100.00 AFFILIATED MANAGERS 8,631.26 11,341.24 2,709.98 GROUP INC 09 -01 -10 04 -02 -12 100.00 ATWOOD OCEANIC$ INC 2,642.59 4,520.39 1,877.80 03 -01 -12 04 -02 -12 100.00 AMERICAN EXPRESS 5,358.93 5,816.36 457.93 CORP. 01 -21 -09 04 -02 -12 100.00 BECTON DICKINSON & 7,185.21 7,820.32 635.11 CO 12 -27 -11 04 -02 -12 200.00 CARDINAL HEALTH INC 8,179.60 8,595.80 416.20 12 -01 -11 04 -02 -12 100.00 CATERPILLAR TRACTOR 9,662.46 10,781.75 1,119.29 CO O1 -05 -09 04 -02 -12 100.00 CIGNA CORP 1,831.63 4,954.88 3,123.25 03 -01 -07 04 -02 -12 100.00 CVS CAREMARK CORP 3,146.00 4,503.89 1,357.89 09 -20 -10 04 -02 -12 100.00 CONCHO RESOURCES INC 6,468.69 10,295.76 3,827.07 I1 -16 -11 04 -02 -12 200.00 DELTA AIR LINES, INC 1,550.32 1,996.95 446.63 11 -04 -11 04 -02 -12 200.00 DONALDSON INC 6,612.39 7,211.83 599.44 01 -06 -12 04 -02 -12 300.00 BRINKER 7,965.43 8,327.81 362.33 INTERNATIONAL 01 -28 -08 04 -02 -12 200.00 ENIC CORP 3,386.00 5,967.86 2,581.86 10 -18 -11 04 -02 -12 1,000.00 FORD ?ROTOR CO. 11,773.10 12,579.71 806.61 01 -30 -12 04 -02 -12 200.00 FREEPORT MCMORAN 9,198.78 7,864.82 - 1,333.96 COP & GOLD 06 -23 -11 04 -02 -12 200.00 FIRST REPUBLIC BANK 6,811.60 6,623.85 - 187.75 02 -16 -12 04 -02 -12 200.00 GENERAL MILLS INC. 7,968.70 7,884.82 -83.88 03 -27 -12 04 -02 -12 300.00 GRAFTECH 3,588.09 3,650.91 62.82 INTERNATIONAL LTD 04 -25 -11 04 -02 -12 200.00 HASBROINC 9,121.08 7,496.09 - 1,624.99 11 -02 -11 04 -02 -12 200.00 HOME DEPOT 7,196.10 10,005.77 2,809.67 03 -25 -11 04 -02 -12 200.00 IDEX CORP 8,602.42 8,512.80 -89.62 01 -30 -12 04 -02 -12 300.00 INTERPUBLIC GROUP 3,137.22 3,368.92 231.70 COMPANIES INC. 07 -26 -07 04 -02 -12 100.00 JDS UNIPHASE CORP 1,438.00 1,451.97 13.97 10 -12 -07 04 -02 -12 200.00 JDS UNIPHASE CORP 3,111.78 2,903.93 - 207.85 03 -12 -12 04 -02 -12 100.00 COCA COLA COMPANY 7,018.39 7,409.83 391.44 12 -02 -11 04 -02 -12 100.00 LINCOLN ELECTRIC 3,922.11 4,590.89 668.78 HLDGS 10 -27 -09 04 -02 -12 500.00 SOUTHWEST AIRLINES 4,370.65 4,129.90 - 240.75 CO. 11 -09 -07 04 -02 -12 200.00 MICROSOFT CORP. 6,825.02 6,477.85 - 347.17 03 -14 -08 04 -02 -12 900.00 MICRON TECHNOLOGY 5,563.26 7,344.82 1,781.56 INC 12 -23 -11 04 -02 -12 200.00 NAVISTAR 7,580.26 8,085.81 505.55 INTERNATIONAL 05 -20 -09 04 -02 -12 200.00 NV ENERGY INC 2,042.30 3,207.92 1,165.62 09 -28 -11 04 -02 -12 100.00 ONEOK INC 6,761.40 8,I96.81 1,435.41 11 -01 -10 04 -02 -12 100.00 PARKER - HANNIFIN CORP. 7,784.56 8,593.80 809.24 Ol -I1 -12 04 -02 -12 200.00 ST JUDE MEDICAL INC 7,197.48 8,791.80 1,594.32 03 -20 -12 04 -02 -12 400.00 SYMANTEC CORP 7,317,24 7,495.83 178.59 03 -27 -12 04 -02 -12 300.00 AT &T INC. 9,501.96 9,455.78 -46.18 04 -01 -11 04 -02 -12 100.00 TIMKEN CO. 5,230.66 5,168.88 -61.78 02 -16 -11 04 -02 -12 100.00 6VHTING PETROLEUM 6,080.99 5,536.87 - 544.12 CORP 07 -01 -11 04 -02 -12 100.00 WALTER ENERGY INC 12,014.17 6,155.86 - 5,858.31 17 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND GROWTH From 03 -31 -12 Through 06 -30 -12 18 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 11 -02 -11 04.02 -12 100.00 WATSON 6,628.86 6,717.84 88.98 PHARMACEUTICALS 04 -07 -09 04 -02 -12 100.00 EXXON MOBIL CORP. 6,827.00 8,743.30 1,916.30 09 -20 -10 04 -03 -12 800.00 CONCHO RESOURCES INC 51,749.52 81,826.08 30,076.56 10 -27 -10 04.03.12 300.00 CONCHO RESOURCES INC 20,263.26 30,684.78 10,421.52 11 -02 -11 04.05.12 600.00 HQME DEPOT 21,588.30 30,359.31 8,771.01 03 -12 -12 04 -05 -12 100.00 COCA COLA COMPANY 7,013.39 7,328.83 310.44 11-02-11 04 -16 -12 1,000.00 HOME DEPOT 35,980.50 51,692.34 15,711.84 12 -01 -11 04 -19 -12 600.00 CATERPILLAR TRACTOR 57,974.76 64,495.85 6,521.09 CO 03.01.07 04 -19 -12 400.00 CVS CAREMARK CORP 12,584.00 17,370.29 4,786.29 07 -26 -07 04 -19 -I2 400.00 CVS CAREMARK CORP 14,368.00 17,370.29 3,002.29 10 -12 -07 04 -19 -12 300.00 CVS CAREMARK CORP 11,835.00 13,027.72 1,192.72 10 -30 -07 04 -19 -12 200.00 CVS CAREMARK CORP 8,255.00 8,685.14 430.14 01 -28 -08 04 -19 -12 200.00 CVS CAREMARK CORP 7,118.00 8,685.15 1,567.15 04 -22 -08 04 -19 -12 100.00 CVS CAREMARK CORP 3,986.00 4,342.57 356.57 08 -13 -08 04 -19 -12 300.00 CVS CAREMARK CORP 11,166.00 13,027.72 1,861.72 04 -07 -09 04 -19 -12 500.00 CVS CAREMARK CORP 14,370.00 21,712.86 7,342.86 02 -01 -12 04 -19 -12 300.00 CVS CAREMARK CORP 12,834.00 13,027.72 193.72 03 -03 -10 04 -20 -12 900.00 TORO CO 40,592.61 63,905.58 23,312.97 02 -01 -12 04 -20 -12 100.00 TORO CO 6,432.00 7,100.62 668.62 01 -06 -12 04 -23 -12 1,300.00 BRINKER 34,517.08 39,300.32 4,783.24 INTERNATIONAL 11-01-10 04 -24 -12 400.00 PARKER - HANNIFIN CORP. 31,138.24 34,835.70 3,697.46 03 -11 -11 04 -24 -12 500.00 PARKER - HANNIFIN CORP. 42,595.40 43,544.62 949.22 08 -02 -11 04 -24 -12 500.00 PARKER - HANNIFIN CORP. 35,909.75 43,544.62 7,634.87 02 -01 -12 04 -24 -12 200.00 PARKER - HANNIFIN CORP. 16,550.00 17,417.85 867.85 04 -07 -09 04 -25 -12 100.00 APPLE COMPUTER INC 11,568.00 60,969.95 49,401.95 04 -01 -11 04 -25 -12 1,900.00 TIMKEN CO. 99,382.54 I03,469.21 4,086.67 07 -26 -11 04 -25 -12 700.00 TIMKEN CO. 33;175.45 38,120.23 4,944.78 02 -01 -12 04 -25 -12 400.00 TINIKEN CO. 19,944.00 21,732.99 1,838.99 11 -02 -11 04 -26 -12 700.00 WATSON 46,402.02 52,081.00 5,678.98 PHARMACEUTICALS 01 -06 -12 04 -26 -12 100.00 WATSON 6,347.67 7,440.14 1,092.47 PHARI'VIACEUTICALS 01 -13 -12 04 -26.12 1,100.00 WATSON 68,267.21 31,341.57 13,574.36 PHARMACEUTICALS 01 -23 -12 04 -26.12 200.00 WATSON 11,396.26 14,880.29 3,484.03 PHARMACEUTICALS 02 -01 -12 04 -26 -12 300.00 WATSON 17,709.99 22,320.43 4,610.44 PHARMACEUTICALS 01-11-12 05 -01 -12 2,300.00 ST DUDE MEDICAL INC 82,771.02 89,881.98 7,110.96 11 -02 -11 05 -07 -I2 1,200.00 HOME DEPOT 43,176.60 61,756.37 18,579.77 08 -23 -11 05 -24 -12 150.00 NETAPP INC 5,628.09 4,279.49 - 1,348.60 10 -03 -11 05.24 -12 500.00 NETAPP INC 16,958.20 14,264.98 - 2,693.22 02 -01 -12 05 -24 -12 100.00 NETAPP INC 3,941.00 29853.00 - 1,088.00 05 -01 -12 05 -24 -12 700.00 NETAPP INC 28,509.53 19,970.97 - 8,538.56 12 -01 -11 05 -29 -12 200.00 CATERPILLAR TRACTOR 19,32492 18,629.94 - 694.98 CO 01 -06 -12 06 -04 -12 2,700.00 BRINKER 71,689.32 81,931.01 10,241.69 INTERNATIONAL 12 -23 -11 06-11 -12 900.00 NAVISTAR 34,111.17 26,023.90 - 8,087.27 INTERNATIONAL 12 -23 -11 06 -12 -12 - 2,050.00 NAVISTAR 77,697.67 53,402.94 - 24,294.73 INTERNATIONAL 18 ICC Capital l 'vlanagement REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND GROWTH From 03 -31 -12 Through 06 -30 -12 Open Date Close Date Quantity Security Cost Basis Proceeds Gain Or Loss Short Term Long Term 02 -01 -12 06 -12 -12 400.00 NAVISTAR 18,222.00 10,420.09 - 7,801.91 INTERNATIONAL 06 -07 -12 06 -12 -12 1,400.00 NAVISTAR 29,871.52 36,470.30 6,598.78 INTERNATIONAL 05 -20.09 06 -19 -12 1,900.00 NV ENERGY INC 19,401.85 33,356.22 13,954.37 05.20 -09 06 -19 -12 1,500.00 NV ENERGY INC 15,373.35 26,333.86 10,960.51 02 -01 -12 06.19 -12 500.00 NV ENERGY INC 8,160.00 8,777.95 617.95 03 -12 -12 06 -20 -12 1,100.00 COCA COLA COMPANY 77,202.29 82,799.43 5,597.14 10 -12 -07 06 -21 -12 900.00 JDS UNIPHASE CORP 14,003.01 9,318.84 - 4,684.17 10 -30 -07 06 -21 -12 1,000.00 JDS UNIPHASE CORP 15,360.00 10,354.27 - 5,005.73 01 -28 -08 06 -21 -12 1,200.00 JDS UNIPHASE CORP 12,412.44 12,425.12 12.68 04 -22.08 06 -21 -12 500.00 JDS UNIPHASE CORP 7,105.00 5,177.13 . 1,927.87 08 -13.08 06 -21 -12 200.00 JDS UNIPHASE CORP 2,214.00 2,070.85 - 143.15 04.07 -09 06 -21 -12 2,100.00 JDS UNIPHASE CORP 8,295.00 21,743.96 13,448.96 02 -01 -12 06 -2I -12 800.00 JDS UNIPHASE CORP 10,519.04 8,283.42 - 2,235.62 04 -07 -09 06 -21 -12 100.00 EXXON MOBIL CORP. 6,827.00 8,239.93 1,412.93 01 -28 -10 06 -21 -12 400.00 EXXON MOBIL CORP. 25,938.32 32,959.74 7,021.42 07 -20 -11 06 -21 -12 300.00 EXXON MOBIL CORP. 25,071.06 24,719.81 - 351.25 TOTAL GAINS 160,240.26 223,747.90 TOTAL LOSSES - 66,269.21 - 13,252.21 11858,811.10 2,163,277.84 93,971.05 210,395.69 TOTAL REALIZED GAIN/LOSS 304,466.74 19 ICC 2nd Quarter 2012 Fred Income Update As the chart below depicts most of the price action in U.S. Treasury debt has been in 10 and 30 year issues. U.S. Treasury market performance reflected a combination of many forces: Concerns over the weakness of the U.S. recovery. Given an 8.2 +% unemployment rate this worry is justified. 2. Demand for dollar assets as a haven from European turmoil. 3. The Federal Reserve's desire to maintain historically low short term rates while expanding their purchase of long term debt places downward pressure on interest rates. 4. As the second quarter ended, the European central bank lowered their short term rates to all time lows and the euro fell to a 2 year low against the U.S. Dollar. Investors are clearly flocking to the security embodied in the U.S. Dollar. Cash is being plowed into new U.S. Treasuries at a record pace. This implies that U.S. economy growth and euro nation turmoil are bigger concerns than U.S. budget issues! As an example, bidders offered $3.16 for each dollar of the $1.075 trillion of U.S. notes and bonds auctioned by the U.S. Treasury in the I" half of 2012. The previous high was $3.04 in 2011. The bid -to -cover ratio was 2.26 for 1998 to 2001 when the U.S. last had budget surpluses. This is quite a testimony to the perceived stability of the U.S. financial system. Considering that interest rate levels are at all time lows and the U.S. budget deficit once again topped the $1 trillion mark, that is quite a complement. It is difficult to imagine a spike in rates with these forces at work. Our strategy remains to accent yield with an overweight to investment grade corporate debt and mine for gains if rates drop further. As long as the U.S. avoids recession the yield advantage corporate debt affords over treasury issues should serve us well. U.S. Treasury Yield Curve Changes 01/03/12 - 06/30/12 4.00% 3.00% 2.00% 1.00% 0.00% 2 Year ( %) 10 Year ( %) 30 Year ( %) 111/3/2012 0.26 1.94 2.98 ■ 3/30/2012 0.33 0.30 2.21 3.33 1.64 2.75 06/29/2012 U.S. Treasury market performance reflected a combination of many forces: Concerns over the weakness of the U.S. recovery. Given an 8.2 +% unemployment rate this worry is justified. 2. Demand for dollar assets as a haven from European turmoil. 3. The Federal Reserve's desire to maintain historically low short term rates while expanding their purchase of long term debt places downward pressure on interest rates. 4. As the second quarter ended, the European central bank lowered their short term rates to all time lows and the euro fell to a 2 year low against the U.S. Dollar. Investors are clearly flocking to the security embodied in the U.S. Dollar. Cash is being plowed into new U.S. Treasuries at a record pace. This implies that U.S. economy growth and euro nation turmoil are bigger concerns than U.S. budget issues! As an example, bidders offered $3.16 for each dollar of the $1.075 trillion of U.S. notes and bonds auctioned by the U.S. Treasury in the I" half of 2012. The previous high was $3.04 in 2011. The bid -to -cover ratio was 2.26 for 1998 to 2001 when the U.S. last had budget surpluses. This is quite a testimony to the perceived stability of the U.S. financial system. Considering that interest rate levels are at all time lows and the U.S. budget deficit once again topped the $1 trillion mark, that is quite a complement. It is difficult to imagine a spike in rates with these forces at work. Our strategy remains to accent yield with an overweight to investment grade corporate debt and mine for gains if rates drop further. As long as the U.S. avoids recession the yield advantage corporate debt affords over treasury issues should serve us well. ICC Quantitative Strategies Group Q2, 2012 Performance and Market Conunentarl� In order to gain an insightful perspective on the current investment climate, it may be helpful to understand how historical market cycles have played out over time. If one were to go back to 1850 — 162 years ago — it would be observed that U.S. investors have faced serious economic or financial events every 40 years on average. We have also seen that each time, the USA not only recovers, but comes out stronger. Research by Don Schreiber Jr., CEO of WBI Investments, indicates that price appreciation cycles in the DJIA last 17 years on average. Since 1900, these cycles have been followed by a pattern of underperformance, which is followed by an outperformance cycle. During underperformance cycles, big losses can cause investors to abandon their investment strategy. This time is no different from that perspective. We have seen massive de- equitization out of stock markets in search of safe havens, such that, as Blackrock's President, Robert Kapito estimates - today, between individuals, corporations and banks, there is over $10 trillion sitting in cash. This level of cash can result in investors missing powerful bull markets. Furthermore, with the advent of the 24/7 news cycle, investor psychology is overwhelmed with information, especially by the vortex of negative news and emotion. Our process within the ICC QSG, is to fully combine the informational intelligence of our distinct disciplines, Quantitative — Fundamental Macro — Technical, to allow for a non - emotional investment process. Let's take this opportunity to look at the Market insights over the past Three Years, the past Five Years and then back to 1970. It has been three years since most major equity indices (the S &P 500 Index, the DJIA, and the NASDAQ Composite) reached their lowest level of the Great Recession on March 9, 2009. Markets had dropped over 50% from their previous peaks in October 2007. Few people in March of 2009 expected the recovery that followed in the equity markets, to a point where we currently are at or near the 2007 record levels. Generally speaking, capital markets in the short-term are difficult to predict. Thus, as result of overreaction to short-term events, both good and bad, markets exhibit various degrees of volatility. The equity market decline of 2008 -2009 was not as harsh on the patient, long -term investor, who remained invested despite the short term volatility and thus, participated in the recovery of post March 9, 2009. The events of the past three years also suggest that the global economy may be much more robust than many people seem to believe. Going back five years, it is appropriate to acknowledge the Unhappy Fifth Anniversary — July 2007 — which is widely recognized as the start of the financial crisis that triggered the global recession. Although the equity markets have recovered and the global business cycle turned slightly upward, one could say that the economic situation today is an extension of the series of events that began in 2007. Europe's sovereign debt crisis and recession, as well as the slowing U.S. recovery, is another chapter in the book that began five years ago. The book is on the deleveraging process across the globe, which is occurring at a different magnitude and at different paces in different regions. It was housing in the US in 2007 and 2008; today it is peripheral Europe. Europe has some very difficult decisions to make, but they could be made. There have been multiple bailouts (Spain's banking sector being the latest), summits, treaties, rate -cuts and even key elections that produced changes in governments. Still, the region's economy is worse off, debt ratios are higher and asset prices are lower. Talk of austerity and 1 the reality of can kicking are difficult to implement. All countries and peoples in the Euro zone will have to work together to fix this situation. Germany plays a significant and difficult role. To keep the Euro zone together and prevent a default, it will have to pay up or back Europe's debt. Should Germany leave the euro and revert back to the Deutsche Mark, the Mark would surge against the euro. This could cause the German economy to go into deep recession, as 50% of its GDP is export dependent. In the US, as we enter our fourth year of growth, the recovery is the weakest on record. Early year strength in employment has slowed, but not collapsed, and consumer spending has not been robust lately. Housing has shown some strength with home sales, construction and home values rising. The big uncertainty in the US is the "fiscal cliff'— what will happen if the current tax rates expire? Financial markets would welcome some sort of grand bargain before the election. If we go back to the 1970's, the Nixon -era oil embargo caused the Dow industrials to plunge from 1,020 at the start of 1973 to 616.41 by the end of 1974, a 39.59% decline. In the 1970s the prices of oil and gold skyrocketed, real estate prices collapsed, the banking system was in trouble and politics was a battleground. After being hit with successive losses, the investors in the 1970s sought cash as a safe haven. Doom and gloom were pervasive in the news media, even as the economic conditions recovered in the early 1980s, setting the stage for a great bull market run. From a low of 875 in 1982, the DJIA rose to 11,487 at the close of 1999 — a 1,214% gain. Today, faced with the most negative news cycles since the 1970s, could the staggering recovery in corporate earnings be signaling another macro bull run in the US? There still remains the perspective that the Euro zone credit crisis could be resolved with short -term stimulus and long -term austerity, and thus a recovery begins. What is the prospect in the US if the policy makers come to terms on taxes, jobs, the role of government as well as the private sector and spending? There is an unprecedented amount of cash on the sidelines, corporate earnings and balance sheets are strong, populations continue to increase, innovation still flourishes and there is a strong future for the USA. Core Value Equity Core Value Equity Portfolio Year -to -Date Attribution The Core Value portfolio's year -to -date performance is viewed broken out in terms of attribution for the year -to -date period. Specific stock selection was the primary source of underperformance that was centered on the more cyclical areas such as Finance, Energy, Industrials and Materials. As we have reviewed, both these portfolio construction concepts— specific stock selection and exposure to the more cyclical areas of the market —are precisely those concepts that undergo the severest duress during periods of major de- equitization of markets, in which money -flow consistently abandons stocks for the safe (and nil to negative interest bearing) bond market. Under such a negative psychological pall, the unemotional aspects of quantitative portfolio management, which seek to identify the greatest value propositions utilizing a rigorously tested factoring model, are cast aside as fear wins over fundamentals —or a "get me out at any cost" mind -set. We believe this to be true as our models remain steadfast in keeping our strategies exposed in these areas, with signals that seem to be strengthening in conviction, rather than wavering under the current fear -based investing environment. Building and maintaining portfolios with traditional value attributes, has been a test of will over the past year. One would like to believe the Graham and Dodd investing tenet that during market uncertainty, the certainty of stocks bought cheap would attract the more risk adverse investors. During the past several summers, this has not been the case. The following tables compare the performance of stocks broken down by select value factors versus momentum factors for the quarter: Value Strategies Q2 Return Low P /Book Value -9.9% Low P /Sales -7.8% Low P /Cash Flow -9.8% Earning Yield -8.9% MoniNAW ategies 12 -month Price Return 1.5% Relative Price Strength -0.5% 9 -month Price Return -1.3% As you can see from the results, building portfolios with sensitivity to value was the certain path to underperformance during the second quarter. In addition, the return spread between the highest and lowest relative P/E companies has been as high as we've seen it in some time, with the deepest value category (cheapest valuation) losing - 5.17 %, , while the most expensive names (PE's relative to the benchmark of 1.38 times to 7.07 times), returning a relative return of 2.05 times the benchmark. Q2 Relative P/E Returns by Quintile 02 Relative Returnl Cheapest Quintile 1 -5.17 Quintile 2 1.32 Quintile 3 2.33 Quintile 4 1.15 Expensive Quintile 5 2.05 3 Q2 Relative P/S Returns by Quintile 1 Q2 Relative R_e_wni Cheapest Quintile 1 -3.49 Quintile 2 -0.24 Quintile 3 2.23 Quintile 4 -0.62 Expensive Quintile 5 0.79 A small portion may be explained by the outperformance of growth relative to the other strategies YTD as the growth benchmark has returned 10.08% while the value has trailed at 8.68 %. Some can be explained by the deflationary pricing of the economy post collapse, that has seen rates fall, but instead of P/E expanding (as they typically do when interest rates fall), P/E ratios are contracting, leading to still lower valuations as investors wait for an "all clear" signal to appear before rotating back into risk assets from the safety of the bond market, the "risk off "trade for value investors. This has more to do with rates not being used as a comparative discounting input, but rather, reflects their use as a total return allocation strategy since the major market top in 2000. To us, this has been a major cause of uncertainty in the marketplace since the public market has been unable to trust traditional "valuation math" that the past three generations of value investors have relied upon in order to anchor their estimates in terms of how "cheap" the market is at any time, at least relative to debt markets. In our Q1 commentary, we showed how news flow was interesting, but not the factor for stock prices, by using a comparison of JP Morgan's (a controversially challenged company from a news flow measurement) stock and bond returns. We pointed out how news flow questioning the banks capital cushion should have at least a common directional impact on all parts of the capital structure. We showed how the last time such a question emerged, in the case of Lehman Brothers, the impact was equal for both equity and debt holders. This time, capital coverage questions were met with equity selloffs, but debt rallies, or same scenario, but different outcome by far. Our conclusion -- the problem is not JPM, its JPM's public equity that is the problem and thus until the confidence is restored in the equity portion of company capital structures, value investors will have more examples like above where company debt rallies, but equity returns are negative. Based on the above observations of the current market environment —that of continued de- equitization, the temporary abandonment of traditional valuation metrics as value indicators for shorter term momentum factors, and the current negative feedback loop which seems to proliferate on the news wires— the current market might be viewed as a "traders" market rather than an "investors" market. When we acknowledge the lower than average trading volumes on the indexes over these past two quarters, in addition to the record plummet in average holding period for a stock on the NYSE, it becomes abundantly clear that the market remains devoid of any kind of investment conviction as traders simply trade portfolios back and forth in search of a quick momentum trade as the sidelines continue to pile up with record amounts of cash. 10 Average Holding Period for a Stock on the NYSE (years) 1920 1925 1930 1235 1940 1245 1950 1955 1960 1965 1270 1275 1980 1985 1990 1925 2000 2005 Source: SG Global Strategy Research At the end of the first quarter, the weighted market cap of the RLG benchmark was $119 Billion and the RLV was $79B. The changes at midyear left the RLG at $110B and RLV increasing to $88B. The way in which this happened was that the largest cap names in the RLG index continue to fall in valuation and are being moved to the RLV index causing its weighted market cap to increase. This brings additional liquidity risk into the RLV index as the names are predominately larger cap and most liquid. We have been consistent in our strategy to build portfolios with valuations below that of the Russell Value Index. Consistent with our modeling, we have been able to increase the weighted market cap of the portfolio, while not having to increase the price paid. For example, the market cap of the CVE portfolio at 3/09/12 was $50.9 billion. At quarter end, it stood at $66.6 billion. We were able to increase the dividend yield from 1.41% to 1.80 %. All the while, we decreased the P/E of the portfolio even further below the benchmark from 14.84 times to 13.84 times. Copyright 2012 Bloomberg Finance L.P. As the chart above highlights, the "autocorrecting" nature of the indexes may have reached a point of inflection in the outperformance of large growth over large value. As the evidence continues to compile of both the magnitude of growth outperformance as well as the duration of the outperformance becoming stretched, we will build Core Value portfolios with increasing deeper value characteristics versus growth in anticipation of the turn. Laree Cap Growth Equity Large Growth Portfolio Year —to -Date Attribution Copyright 2012 Bloomberg Finance L.P. In keeping in sync with our broad outlook detailed above, we have steadily increased the cap weighting of the Large Cap Growth Portfolio in response to opportunities. Like the Value strategy, we increased the market cap of the Large Growth portfolios from 48.2 billion to $65.5 billion. In addition, we simultaneously increased the portfolio dividend yield from 1.38% to 1.73% at the same time to increase our exposure to yield income. 10 Large Growth has had a strong run since 2007, and we are increasingly protective of profits made for the past five years. We are taking advantage of rallies in defensive sectors and rotating into technology (large cap) and energy (large cap and dividend yield) in response to our model output. International ADR Equity We have been positioned for the European risk off trade for some time now. We have no exposure to Spain or Italy, preferring to concentrate investment in the UK or Germany according to our modeling. Opportunities are very few at this time and cash holdings have been better investment choices than attempting to bottom fish. Nonetheless, after avoiding the emerging markets for the better part of the last decade, we are now seeing the selloff creating select opportunities in smaller countries with economies that are quicker to turn toward advantage than the more established countries. To this end, our investment in Brazil is likely to increase in response to an economic expansion that favors equity investment. Sector Rolational Equity Sector Rotation Portfolio Year —to -Date Attribution Where the 1 st quarter was relatively quiet and performance was strong in the financial markets, the second quarter was noisy, and as a whole stocks suffered modest losses. The losses were not enough to offset the gains YTD. The S &P 500 Index fell (2.8 %) for the quarter, but is still up 9.5% YTD. When the quarter began there was concern that stocks had risen too far and too fast and that the market was due for a correction. By the beginning of June US stocks had met the technical definition of a correction by falling over 10% from their April highs. In the final weeks of the quarter, a bit of a recovery was in the making for stocks. 7 For the month of June 2012, the ICC Sector Rotational Core was up 3.23 %. For the 2nd quarter, the Portfolio was down (4.80 %). Year -to -Date, the Sector Rotational Core portfolio was up 8.45 %. The Sector Rotational Core portfolio holds the conviction that the earnings a company is able to achieve over time has a direct correlation to the price of its' stock — Earnings Mean Something. Historically, that conviction has had high validity as evidenced by the strong long -term performance of the Portfolio. This portfolio tends to do well when positive earnings are rewarded with an increase in stock price and negative earnings result in a decrease in stock price. The Portfolio has not performed optimally when macro concerns override all earnings data and stocks are highly correlated — they all move in the same direction based on macro news and /or policymakers announcements. After four years of uncertainty in the markets, we believe that many of the macro concerns are now known — albeit not solved -- and that companies with good valuations, good, strong, predictable earnings and good price trends will be rewarded again. As 1st quarter earnings came in during the 2nd quarter, we saw that in the S &P 500 overall, 57% of companies beat their earnings expectations. In the Sector Rotational Core portfolio, over 80% of companies beat or met their earnings expectations. In the Index, Discretionary stocks had the most positive surprises, while Utilities had the least. Going forward we believe that there are positive forces present that should not be overlooked amid the negative market and economic news heard daily. Keep in mind that the US economy is still growing and should continue to churn out modest growth. Housing, which has usually been a leading indicator, appears to be in a period of improvement. The commercial banking system is adapting to the new regulatory reality and is still improving in profits and balance sheets are strong. Across many companies, balance sheets are very strong and cash levels very high. Markets have been see - sawing between the concerns over macro risks, good corporate earnings and hope for a new direction with policy makers. The battle over policy will be long and hard, but it is our belief that the positive forces will win out. We believe that the downside risks are well known and have been established. It appears that risks are already priced into equity valuations and as such, the low valuations appear compelling. Right now the policy makers hold the cards, but when they become more transparent, and more importantly, make strides in the right direction we could see a time once again where companies with good valuations and good earnings are richly rewarded. Palm Beach Gardens Police Pension Fund Executive Summary Report Table of Contents SECTION PAGE Market Snapshot 1 Index Comparisons 2 Compliance Report 3 Total Portfolio Pie Chart 4 Manager Pie Chart 5 Asset Allocation Table 6 Gain /Loss Table 7 Total Ranks Table 8 Manager Ranks 9 Scatterplot Graphs: Total Fund Graph 11 Rhumbline Equities Graph 12 ICC Fixed income Graph 13 Beta Graph 14 Alpha Graph 15 Beta/ Alpha Table 16 Batting Average Graph 17 Batting Average /R- Squared Table 18 Other Managers' Page 19 to C, histle ,asset consuffing 0 o� NOXOR 1 I6 1 11 -10.00 -20.00 Index Comparison June 30, 2012 3 Months Last 12 Months Last 3 Years (Annualized) ■ Barclays Gov /Credit Bond ■ Russell 1000 Growth ❑ Russell 2000 Value SW Cixistte Asset T"Onsuffing ®Barclays Gov /Credit - Intermediate ■ Russell 1000 Value ■ Russell 3000 ❑ S&P 500 ■ Russell 2000 Growth ❑ MSCI SAFE Page 2 Palm Beach Gardens Police Pension Fund Compliance Report June 30, 2012 3. Did the equity return, over the trailing 3 -year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [4th] 4. Did the equity return, over the trailing 5 -year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4% r Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [52nd] 5. Is the amount invested in any single security less than or equal to 5% of the market value of the total equity portfolio? 6. Is the amount invested in any single industry less than or equal to 20% of the market value of the total equity portfolio? F,/- TOTAL FIXED INCOME 1. Did the fixed income return, over the trailing 3 -year period, exceed the 89% BCGC and 11 %o Non -US World Gov't Bond? [6.43 vs. 6.771 2. Did the fixed income return, over the trailing 3 -year period, rank in the top 40% of the Mobius Broad Fixed Income F- Universe? [69th] 3. Did the fixed income return, over the trailing 5 -year period, exceed the BCGC? [5.97 vs. 6.90] F- 4. Did the fixed income return, over the trailing 5 -year period, rank in the top 40% of the Mobius Broad Fixed Income rv- Universe? [34th] 5. Is the amount invested in any single security (with exception of U.S. Government and its agencies) less than or equal to 5% r of the market value of the total fixed income portfolio? 6. Is the minimum quality rating of the domestic bond investments BBB from Standard & Poor's or BAA from Moody's? r ii (7� histle Asset T0115111tillp r F F r- F- F- Page 3 YES NO TOTAL FUND 1. Did the total return, over the trailing 3 -year period, exceed the policy, which is comprised of 25% S &P500,10% S &P400, F7 10% S &P600,10% R1000G, 10% EAFE, 31% BCGC & 4% Non US $ World Gov. Bond? [11.87 vs. 13.14] 2. Did the total return, over the trailing 3 -year period, rank in the top 40% of the Universe comprised of 25% Mobius Broad Large Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Cap Growth, 10% International Equity, 31% Broad Fixed & 4% International Fixed Income? [48th] 3. Did the total return of the fund over the trailing 3 -year period equal or exceed 7.5% (actuarial assumption rate of return)? [11.87 vs. 7.50] TOTAL EQUITY 1. Did the equity return, over the trailing 3 -year period, exceed the 38.4% S &P 500,15.4% S &P 400, 15.4% S &P 600,15.4% r R1000G index and 15.4% EAFE? [16.25 vs. 16.06] 2. Did the equity return, over the trailing 5 -year period, exceed the 38.4% S &P 500,15.4% S &P 400,15.4% S &P 600,15.4% R1000G index and 15.4% EAFE? [0.54 vs. 0.37] 3. Did the equity return, over the trailing 3 -year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [4th] 4. Did the equity return, over the trailing 5 -year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4% r Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [52nd] 5. Is the amount invested in any single security less than or equal to 5% of the market value of the total equity portfolio? 6. Is the amount invested in any single industry less than or equal to 20% of the market value of the total equity portfolio? F,/- TOTAL FIXED INCOME 1. Did the fixed income return, over the trailing 3 -year period, exceed the 89% BCGC and 11 %o Non -US World Gov't Bond? [6.43 vs. 6.771 2. Did the fixed income return, over the trailing 3 -year period, rank in the top 40% of the Mobius Broad Fixed Income F- Universe? [69th] 3. Did the fixed income return, over the trailing 5 -year period, exceed the BCGC? [5.97 vs. 6.90] F- 4. Did the fixed income return, over the trailing 5 -year period, rank in the top 40% of the Mobius Broad Fixed Income rv- Universe? [34th] 5. Is the amount invested in any single security (with exception of U.S. Government and its agencies) less than or equal to 5% r of the market value of the total fixed income portfolio? 6. Is the minimum quality rating of the domestic bond investments BBB from Standard & Poor's or BAA from Moody's? r ii (7� histle Asset T0115111tillp r F F r- F- F- Page 3 Manager Compliance Questionnaire June 30, 2012 Have there been any changes in your organization? Have you undergone any change in ownership or control? No 2. Have there been any changes in your investment philosophy? M 3. Have there been any changes in your staff of investment professionals? No 4. Have you lost a substantial amount of business (amount of percentage of assets under management)? No 5. Have you gained a substantial amount of business (amount of percentage of assets under management)? No Have there been any new investigations begun by any state or federal government or their agencies, or any charges filed, with regard to any division or unit of your company, and in particular anyone who directly or indirectly performs services for this client? Please provide details (if there is any doubt, please err on the side of providing too much information). No 7. For managers, with fixed income portfolios that we monitor, are you currently invested in commercial mortgage backed securities (CMBS)? (If yes, please give % of fixed portfolio) 10r S. Are you invested in any unhedged and /or levereged derivatives? No 9. What percentage of equity is international? The manager must immediately notify the Board and the Consultant when the international exposure reaches ten percent (10 %). An explanation will be needed as to why the manager is changing their discipline. (This does not apply to managers that are 100% international equity and to those that have been previously given permission by the board and the consultant) 0.00% 10. Are you invested in any companies on the SBA's website? (Please review list of scrutinized companies on the following website: http : / /www.sbafla.com / fsb/ Home/ ProtectingFIoridasInvestmentAct /tabid/75IMef ault.aspx LUAA 11. Name of person completing this form (please include company name)? Steven Stack, Chief Compliance Officer Page 3a Manager Compliance Questionnaire June 30, 2012 1. Have there been any changes in your organization? Have you undergone any change in ownership or control? No. 2. Have there been any changes in your investment philosophy? M 3. Have there been any changes in your staff of investment professionals? No. 4. Have you lost a substantial amount of business (amount of percentage of assets under management)? No. 5. Have you gained a substantial amount of business (amount of percentage of assets under management)? No. 6. Have there been any new investigations begun by any state or federal government or their agencies, or any charges filed, with regard to any division or unit of your company, and in particular anyone who directly or indirectly performs services for this client? Please provide details (if there is any doubt, please err on the side of providing too much information). No. 7. For managers, with fixed income portfolios that we monitor, are you currently invested in commercial mortgage backed securities (CMBS)? (If yes, please give % of fixed portfolio) N/A 8. Are you invested in any unhedged and/or levereged derivatives? N/A 9. What percentage of equity is international? The manager must immediately notify the Board and the Consultant when the international exposure reaches ten percent (10 %). An explanation will be needed as to why the manager is changing their discipline. (This does not apply to managers that are 100% international equity and to those that have been previously given permission by the board and the consultant) N/A 10. Are you invested in any companies on the SBA's website? (Please review list of scrutinized companies on the following website: http: / /www.sbafla.conVfsb/ Home/ ProtectingFIoridasInvestmentAct /tabid/75jMefault.aspx N/A 11. Name of person completing this form (please include company name)? Sarah Duncan, RhumbLine Advisers Di,stir Asset Tons llting o Page 3b Fixed Income 28% Palm Beach Gardens Police Pension Fund Total Assets June 30, 2012 Cash 70/n ■Equities ■Fixed Income ■Cash t (,10tte Awt O quities 65% Page 4 Intl. Bonds 3% ICC Palm Beach Gardens Police Pension Fund Total Assets June 30, 2012 _ Rhumbline SFYP500 Rhumbline S&P400 10% 11 7% ■ Rhumbline S&P500 ■ Rhumbline S&P400 ■ Rhumbline S&P600 ■ Intl. Equity ■ ICC Lg. Growth ■ Intl. Bonds ■ ICC Fixed i C, histtt Awt 6115ultilig Page 5 Manager Rhumbline S &P500 Rhumbline S &P400 Rhumbline S &P600 Intl. Equity ICC Lg. Growth Intl. Bonds ICC Fixed Total -------------------------- % of Total Target % thistle asset &Hattingw Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2012 Equities Fixed Income $12,890,000 $0 $5,223,000 $0 $5,271,000 $0 $3,441,000 $0 $5,647,000 $0 $0 $1,471,000 $0 $12,829,000 $32,472,000 ---------------------------------------------- $14,300,000 64.8% 28.5% 65.0% 35.0% Cash $0 $0 $0 $0 $0 $0 $3,332,000 $3,332,000 ----------------- 6.7% 0.0% Total $12,890,000 $5,223,000 $5,271,000 $3,441,000 $5,647,000 $1,471,000 $16,161,000 $50,104,000 --------------- - - - - -- 100.0% 100.0% % of Total 25.7% 25.0% 10.4% 10.0% 10.5% 10.0% 6.9% 10.0% 11.3% 10.0% 2.9% 4.0% 32.3% 31.0% 100.0% 100.01 -------------- - - - - -- Page 6 Portfolio Total Fund Total Equities ICC Large Growth Rhumbline S &P 500 Rhumbline S &P 400 Rhumbline S &P 600 Intlernational Equity Intlernational Bonds ICC Fixed Income Real Estate •------------------- - - - - -- Palm Beach Gardens Police Pension Fund Performance Evaluation Summary Last Qtr. MV $51,232,000 $34,588,000 $6,675,000 $13,253,000 $5,492,000 $5,468,000 $3,700,000 $1,465,000 $13,712,000 $0 June 30, 2012 Net Flows $13,000 - $696,000 - $707,000 $0 $0 $0 $0 $0 - $1,173,000 $0 Inv GO $1,141,000 $1,420,000 - $322,000 - $363,000 - $269,000 - $197,000 - $259,000 $5,000 $289,000 $0 This Qtr. MV $50,104,000 $32,472,000 $5,647,000 $12,890,000 $5,223,000 $5,271,000 $3,441,000 $1,471,000 $12,829,000 $0 W 0, 4W& Awt GRAting 0 Page 7 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2012 Current Fiscal Year uarter FYTD One Year Three Years Five Years 2011 2010 2009 2008 2007 TOTAL FUND (Net of Fees)[Inception 3 -31 -1992] Return -2.25% 13.56% 2.61% 11.87% 3.12% 0.22% 10.09% 5.62% -13.73% 11.90% Ranking ( *) 48 43 22 48 22 40 46 20 44 50 Policy Return ( * *) -1.91% 14.36% 3.21% 13.14% 3.04% 1.76% 10.82% 1.64% -12.83% 12.98% Policy Ranking ( *) 34 15 27 23 12 34 62 TOTAL EQUITIES(Net of Fees)[Inception 6 -30 -2000] Return -4.25% 21.44% -0.11% 16.25% 0.54% -2.62% 12.36% -1.00% -23.28% 17.89% Ranking 74 1 37 4 52 66 21 62 95 50 Policy Return (38.4 % S&P500, 15.4 % S&P400, 15.4 % S&P600, 15.4% R1000G, 15.4% EAFE) -4.02% 20.42% 0.66% 16.06% 0.37% -0.50% 11.44% -4.36% -21.04% 17.05% Policy Ranking ( * *) 65 2 23 4 58 27 34 92 78 58 TOTAL FIXED INCOME(Net of Fees)[Inception 3- 31- 1994](International Fixed Inception 9 -30 -2010) Return 1.87% 3.26% 7.29% 6.43% 5.97% 4.78% 7.63% 11.10% 0.54% 4.37% Ranking (Broad Fixed) 41 76 45 69 34 14 45 53 28 40 Policy Return (89% BCAB and 11% Non -US World Gov't Bond) 1.86% 3.08% 6.70% 6.77% 6.90% 5.21% 7.79% 11.19% 3.85% 5.61% Policy Ranking (Broad Fixed) 41 78 53 64 19 10 44 53 13 19 * 25% Broad Large Cap Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Growth, 10% International, 4% Intl. Bond, 31 % Broad Fixed ** 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Intl. Bond 31 % BCAB * ** 38.4 % Broad Large Cap Core, 15.4 % Mid Cap, 15.4 % Small Cap, 15.4 % Broad Large Cap Growth, 15.4 % International Gold indicates equal to or beat the index, or in upper 40% of universe Red indicates bottom 40% of universe C, 4istle Awt GGsul#ing Page 8 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2012 Return Current uarter FYTD One Year Three Years Five Years 2011 2010 Fiscal Year 2009 2008 2007 17.77% -2.77% RHUMBLINE S&P 500 EQUITY PORTFOLIO(Inception 6 -30 -2000) 18.74% Ranking (Broad Mid Cap) 39 25 Return -2.74% 22.44% 5.51% 16.42% 0.43% 1.19% 10.21% -6.49% - 21.72% 16.63% Ranking (Br.Large Cap Core) 10 20 8 18 27 20 29 55 36 39 Policy(S&P500) -2.75% 22.43% 5.45% 16.40% 0.22% 1.15% 10.16% -6.91% -21.98% 16.44% Policy Ranking (Br.Large Cap Core) 12 20 9 19 34 20 30 62 40 43 9 1 RHUMBLINE S&P 400 EQUITY PORTFOLIO(Inception 12 -31 -2002) ICC LARGE CAP GROWTH EQUITY PORTFOLIO(Inception 9 -30 -2007) RHUMBLINE S&P 600 EQUITY PORTFOLIO(Inception 10 -31 -2003) Return -4.90% 22.31% -1.94% 19.53% 2.76% -1.17% 17.77% -2.77% - 16.54% 18.74% Ranking (Broad Mid Cap) 39 25 20 9 3 26 12 100 9 1 Policy (S&P 400) -4.93% 21.91% -2.33% 19.37% 2.56% -1.28% 17.78% -3.10% -16.68% 18.76% Policy Ranking (Broad Mid Cap) 40 29 24 10 6 27 12 100 9 1 ICC LARGE CAP GROWTH EQUITY PORTFOLIO(Inception 9 -30 -2007) RHUMBLINE S&P 600 EQUITY PORTFOLIO(Inception 10 -31 -2003) Return -3.60% 26.49% 1.46% 19.67% 1.88% 0.21% 14.14% - 10.54% - 13.64% 15.17% Ranking (Broad Small Cap) 28 15 16 18 44 26 37 86 22 51 Policy (S &P 600) -3.58% 26.52% 1.43% 19.78% 1.84% 0.21% 14.21% -10.61% -13.83% 14.93% Policy Ranking (Broad Small Cap) 27 15 16 17 46 26 36 86 2 53 ICC LARGE CAP GROWTH EQUITY PORTFOLIO(Inception 9 -30 -2007) 4 -Years Return -5.76% 20.99% -3.26% 15.86% 5.37% -6.48% 14.62% 15.30% -30.79% n/a Ranking (Broad Large Cap Growth) 74 43 93 42 20 94 8 1 100 n/a Policy (R1000G) -4.02% 21.75% 5.76% 17.50% 5.20% 3.78% 12.65% -1.85% -20.88% n/a Policy Ranking (Broad Large Cap Growth) 25 30 14 24 20 14 20 35 32 n/a INTERNATIONAL EQUITY(Inception 9 -30 -2006) Return -7.00% 11.60% - 11.78% 9.14% -3.93% -11.11% 9.09% 2.30% - 29.10% 27.48% Ranking (International Equity) 51 19 27 25 28 50 32 48 36 43 Policy (MSCI SAFE) -6.85% 6.87% -13.38% 6.45% -5.63% -8.94% 3.71% 3.79% -30.12% 25.38% Policy Ranking (International Equity) 46 72 40 54 52 25 65 39 45 57 Gold indicates equal to or beat the index, or in upper 40% of universe Red indicates bottom 40% of universe Ul�ttle ,�l�t �unul #ink Page 9 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2012 Current Fiscal Year uarter FYTD One Year Three Years Five Years 2011 2010 2009 2008 2007 INTERNATIONAL FIXED INCOME PORTFOLIO (Inception 9 -30 -2010) Return 0.37% 2.65% -0.04% n/a n/a 0.33% n/a n/a n/a n/a Policy (Non -US World Bond) 0.19% -0.50% 0.44% n/a n/a 4.14% n/a n/a n/a n/a Gold indicates equal to or beat the index, or in upper 40% of universe Red indicates bottom 40% of universe of �istlP Awt boutting W Page 10 ICC FIXED INCOME PORTFOLIO (Inception 3 -31 -1994) Return 2.15% 3.67% 8.48% 7.10% 6.67% 5.66% 8.10% 11.96% 1.22% 4.98% Ranking (Broad Fixed) 25 72 34 59 22 8 42 46 :' 27 Policy(BCAB) 2.06% 3.52% 7.48% 6.94% 6.80% 5.29% 8.17% 10.56% 3.66% 5.13% Policy Ranking (Broad Fixed) 30 74 43 61 20 9 41 57 13 24 INTERNATIONAL FIXED INCOME PORTFOLIO (Inception 9 -30 -2010) Return 0.37% 2.65% -0.04% n/a n/a 0.33% n/a n/a n/a n/a Policy (Non -US World Bond) 0.19% -0.50% 0.44% n/a n/a 4.14% n/a n/a n/a n/a Gold indicates equal to or beat the index, or in upper 40% of universe Red indicates bottom 40% of universe of �istlP Awt boutting W Page 10 June 30, 2012 EXPLANATION OF RISKIREWARD SCATTERPLOT GRAPHS The crossing lines represent the 5 -year return (horizontal line) and 5 -year standard deviation or volatility or risk (vertical line) of the index against which the Fund is being measured. Each point represents the Fund's 5 -year return (vertically) and standard deviation or volatility (horizontally), relative to the index. If a point is in the southwest quadrant, for example, the 5 -year return of the Fund has been less than (below) the index line, and the 5 -year standard deviation (volatility) has also been less than (to the left of) the index line. There are four points, one for each of the last four quarters. The earliest one is the smallest and the quarter just ended being the largest. Each point shows the 5 -year relative position of the Fund versus the index for that quarter. The movement of the points shows the trend, or direction, over time. As noted in the graph, the best place to be is the northwest quadrant (less risk and a higher return); the worst place to be is the southeast quadrant (more risk and a lower return). llhistl¢ Let C Palm Beach Gardens Police Pension Fund Total Fund Trailing 5 -Years (versus 25% S &P500, 10% S &P400, 10% S &P600, 10% R1000G, 10% SAFE, 4% Non -US World Bond, 31% BCGQ 3 o� o� 04 � 0 o� U 01 Q -3 June 30, 2012 Good Aggressive Conservative Bad -3 0 3 Risk (Difference in Standard Deviations) E• 613012012 ® 313112012 ❑ 1213112011 s 9/30/2011 I C,histl¢ Aasetbolting Page 11 3 x o� o� 04 � 0 o� U 01 Q -3 Palm Beach Gardens Police Pension Fund Total Equity Trailing 5 -Years (versus 38.4% S &P 500, 15.4% S &P 400,19.4% S &P 600,19.4% R1000G & 15.4% Intl. ) June 30, 2012 Good Aggressive Conservative Bad -3 0 Risk (Difference in Standard Deviations) • 613012012 *313112012 ❑ 1213112011 ♦ 913 012 011 I ��hiatle feet �nnsultinq� m Page 12 3 K o� o� 04 � 0 o� U 01 Q -3 Palm Beach Gardens Police Pension Fund Total Fixed Income 5 -Year Trailing (versus 89% BCGC, 11% Non -US World Gov't Bond) June 30, 2012 Good Aggressive Conservative Bad -3 0 Risk (Difference in Standard Deviations) • 613012012 *313112012 ❑ 1213112011 ♦ 913 012 011 I thistle �1s�et �nn�ultin� r m Page 13 Jun -12 Mar -12 Dec -11 Sep -11 Palm Beach Gardens Police Pension Fund Beta: Trailing 5 -Year Risk (or Inception ifLess) June 30, 2012 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 ■ Total Fund ■ Large Cap ❑ Mid Cap ❑ Small Cap ■ Total Fixed ■ International ■ Large Growth to0, histle Asset'GumIttliq Page 14 2.0 0.0 -2.0 Palm Beach Gardens Police Pension Fund Alpha: Trailing 5 -Year Reward (or Inception ifLess) June 30, 2012 TOTAL FUND & INDIVIDUAL MANAGERS J1111-12 Mar -12 Dec -11 Sep -11 ■ Total Fund ❑ Large Cap ❑ Mid Cap ❑ Small Cap ■ Total Fixed ❑ International ■ Large Growth thistle ASSet bugulfilig i Page 15 Total Fund Managers, Fixed Income Total Fixed Managers, Equities Large Cap Mid Cap Small Cap International Large Growth Palm Beach Gardens Police Pension Fund Alpha & Beta: 5 -Years Trailing (or Inception ifLess) June 30, 2012 BETA Current Policy fun-12 Mar -12 Dec -11 _i 1 * 0.77 0.77 0.77 0.77 0.87 0.86 0.86 0.86 S &P500 0.99 0.99 0.99 0.99 S &P400 0.99 0.99 0.99 0.99 S &P600 0.99 0.99 0.99 0.99 EAFE 0.40 0.43 0.42 0.44 R1000G 1.10 1.11 1.11 1.09 ALPHA Total Fund 0.77% 1.02% 0.72% 0.50% Managers, Fixed Income Total Fixed BCAB -0.01% -0.01% 0.06% -0.11% Managers, Equities Large Cap S &P500 0.22% 0.23% 0.21% 0.20% Mid Cap S &P400 0.22% 0.24% 0.20% 0.13% Small Cap S &P600 0.06% 0.08% 0.11% 0.09% International EAFE -1.67% 0.43% -0.90% -0.84% Large Growth R1000G -1.62% -1.42% -0.99% -1.22% * 25% S&P 500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non -US World Gov't Bond, 31 % BCAB Page 16 t 0histte asset (TAIslittin Palm Beach Gardens Police Pension Fund Batting Average: 5 -Years Trailing (or Inception if Less) June 30, 2012 TOTAL FUND & INDIVIDUAL MANAGERS 100 75 50 25 0 Jun -12 Mar -12 Dec -11 Sep -11 ■Total Fund ❑Large Cap ❑Mid Cap ❑ Small Cap ■Total Fixed ■International ■Large Growth Sw (7� histle Asset Cnnsulfiug �i Page 17 Palm Beach Gardens Police Pension Fund Batting Average: 5 -Years Trailing (or Inception ifLess) June 30, 2012 Managers, Equities Large Cap S &P500 BATTING A VERAGE 1.00 1.00 1.00 Mid Cap Current 1.00 1.00 1.00 1.00 Small Cap Policy [un-12 Mar -12 Dec -11 Sep -11 Total Fund EAFE 35.00 35.00 35.00 35.00 Managers, Fixed Income R1000G 0.91 0.91 0.91 0.90 Total Fixed BCAB 40.00 40.00 40.00 35.00 Managers, Equities Large Cap S &P500 70.00 70.00 65.00 65.00 Mid Cap S &P400 75.00 75.00 70.00 65.00 Small Cap S &P600 50.00 50.00 55.00 55.00 International EAFE 60.00 65.00 60.00 55.00 Large Growth R1000G 47.37 50.00 52.94 50.00 R- SQUARED Total Fund 0.96 0.96 0.96 0.96 Managers, Fixed Income Total Fixed BCAB 0.74 0.75 0.74 0.75 Managers, Equities Large Cap S &P500 1.00 1.00 1.00 1.00 Mid Cap S &P400 1.00 1.00 1.00 1.00 Small Cap S &P600 1.00 1.00 1.00 1.00 International EAFE 0.26 0.28 0.27 0.28 Large Growth R1000G 0.91 0.91 0.91 0.90 * 25% S&P 500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non -US World Gov't Bond, 31 % BCAB 011116tle Awt O Page 18 Performance of Other Managers June 30, 2012 CORE EQUITY Atlanta Capital Management Co., LLC -High Quality Growth Plus -Gross Size Eagle Asset Management - Conservative Large Cap Equity -Gross Size ICC Capital Management, Inc -Core Value -Gross Size Inverness Counsel - Inst'l Pension -Gross Size Logan Capital Management -Large Core 60/40 -Gross Size Madison Investment Advisors, Inc. -Large Cap Equity (Instl) -Gross Size Rhumbline Advisers Corporation - Russell 1000 Index Fund -Gross Size Robeco Investment Management, Inc. - VUG Disc Equity Large Cap -Gross Size South Texas Money Management -Large Cap Core -Gross Size Russell 1000 S&P 500 GROWTH E 0 UITY Denver Investment Advisors, LLC - Growth -Gross Size Garcia Hamilton & Associates - Quality Growth -Gross Size ICC Capital Management, Inc -Large Cap Growth Equity -Gross Size Logan Capital Management -Large Cap Growth -Gross Size Montag & Caldwell, Inc. -Large Cap Growth -Gross Size Rhumbline Advisers Corporation - Russell 1000 Growth Index Fund -Gross Size Sawgrass Asset Management, LLC -Large Cap Growth Equity -Gross Size Silvant Capital - Select LCG Stock - Grosss Size Russell 1000 Growth S &P 500 /Citigroup Growth Rhumbline Lame Cap(FYE) Rhumbline Mid Cap(FYE) Rhumbline Small Cav(FYE) International Equity(FYE) ICC Large Growth(FYE) us �hisfl¢��5el�uii�ulfinq� Qtr -6.37 -3.33 -6.37 -4.73 -2.88 -2.77 -3.11 -3.69 -3.41 -3.12 -2.75 -5.41 -5.61 -5.60 -6.92 -1.89 -4.06 -2.54 -6.27 -4.02 -2.05 -2.74 -4.90 -3.60 -7.00 -5.76 YTD 17.97 19.19 19.29 23.12 21.55 19.21 20.91 18.81 18.65 22.34 22.43 21.01 19.15 19.82 18.42 19.23 21.66 21.94 23.20 21.75 21.85 22.44 22.31 26.49 1 Yr -2.47 3.37 -5.04 3.07 5.51 5.04 3.20 3.09 -5.39 4.37 5.45 3.94 3.93 -3.83 -2.95 7.40 5.74 9.11 2.06 5.76 7.76 5.51 -1.94 1.46 3Yr 15.11 13.36 11.53 13.12 22.40 13.80 16.17 15.01 13.46 16.64 16.40 18.45 15.45 15.05 22.73 14.11 17.48 17.17 13.94 17.50 17.45 16.42 19.53 19.67 5Yr 2.62 -0.57 -1.37 -0.05 4.61 1.66 0.35 -0.29 -0.17 0.39 0.22 2.68 2.95 1.73 3.16 4.51 2.91 2.64 2.42 2.87 3.04 0.43 2.76 10Yr 5.28 5.63 4.82 6.10 4.88 5.69 5.58 5.80 5.72 5.33 6.43 4.80 6.50 8.12 5.72 6.09 5.78 5.84 6.03 5.77 5.46 n/a n/a 11.60 -11.78 9.14 -3.93 n/a 20.99 -3.26 15.86 n /a n/a Page 19 Performance of Other Managers June 30, 2012 VALUE EQUITY BRC Investment Management Large Cap Value -Gross Size Buckhead Capital Management -Value Equity -Low PIE -Gross Size Cascade Investment Counsel, LLC -Large Cap Value -Gross Size Ceredex Value Ad Large Cap Value Cornerstone Investment Mgmt. -Large Cap Value -Gross Size Crawford Investment Counsel, Inc. - Dividend Growth -Gross Size DePrince, Race, Zollo, Inc. -Large Cap Value Equity -Gross Size Eagle Asset Management -Value - Institutional -Gross Size ICC Capital Management, Inc -Core Value -Gross Size Missouri Valley Partners -Large Cap Value -Gross Size Rhumbline Advisers Corporation - Russell 1000 Value Index Fund -Gross Size The Boston Company Asset Mgmt., LLC - US Large Cap Value Equity Management RBC Global Asset Management, Inc. -Large Cap Value -Gross Size Westwood Management Corporation - LargeCap Equity -Gross Size Russell 1000 Value S &P 500 /Citigroup Value MID -CAP EQUITY Amalgamated Bank - LongView 400 MidCap Index Fund -Gross Size Batterymarch Financial Mgmt., Inc. - US Mid Cap Russell -Gross Size Chicago Equity Partners, LLC -Mid Cap Core Equity -Gross Size Rhumbline Advisers Corporation -SAP 400 Index Fund -Gross Size Robeco Investment Management, Inc. - BPAM Mid Cap Value Equity -Gross Size Russell Midcap S &P Midcap 400 SMID -CAP EQUITY Advanced Investment Partners AtlantaCapital Management -High Quality SMID -Gross Size Eagle Asset Management - SMID Core - Institutional -Gross Size Kayne AndersonRudnick - SMID Core -Gross Size Westwood Management Corporation - SMID Cap Equity -Gross Size Russell 2500 Rhumbline Large Cap(FYE) Rhumbline Mid Cap(FYE) Rhumbline Small Cap(FYE) International Equi y(FYE) ICC Large Growth(FYE) U i 1�tle Awt Crow t*ii9i Qtr -2.41 -3.75 -5.30 -4.12 -6.38 -1.89 -6.43 -6.08 -6.37 -3.93 -2.20 -5.97 -2.19 -3.59 -2.20 -3.58 -4.92 -4.74 -5.37 -4.92 -4.70 -4.40 -4.93 -4.10 -3.93 -4.86 -5.38 -7.08 -4.14 -2.74 -4.90 -3.60 -7.00 -5.76 "IWO-E 27.53 18.00 0.43 21.16 13.66 20.31 19.33 16.72 19.29 19.98 22.84 21.25 24.68 22.35 22.92 23.06 21.88 21.79 22.57 21.96 23.80 21.26 21.91 25.48 25.31 19.93 16.95 19.70 24.03 22.44 22.31 26.49 11.60 20.99 I Yr 3Yr 5Yr 4.12 16.62 3.04 3.19 12.76 -1.07 -9.48 8.50 -0.66 0.65 15.36 0.78 -1.75 11.91 -1.50 2.27 13.43 0.93 -1.31 18.48 -0.58 -3.64 12.98 -1.06 -5.04 11.53 -1.37 2.25 13.22 -2.03 3.03 15.77 -2.03 -5.36 11.93 -1.51 5.11 14.58 -0.79 1.30 13.30 -0.52 3.01 15.80 -119 3.00 15.32 -2.68 -2.35 19.33 2.56 -2.25 18.56 -0.40 -1.46 21.37 0.72 -2.21 19.41 1.88 -0.22 20.64 4.52 -1.65 19.44 1.06 -233 19.36 2.55 -1.18 3.82 -6.60 2.78 -6.38 -2.29 5.51 -1.94 1.46 -11.78 -3.26 21.09 1.46 20.47 8.15 15.91 2.04 18.12 3.23 17.57 4.50 19.06 1.18 16.42 0.43 19.53 2.76 19.67 1.88 9.14 15.86 n/a IOYr 9.00 4.97 8.05 6.59 4.87 6.65 5.65 4.82 4.30 5.35 7.49 6.33 6.42 5.28 4.77 8.19 8.37 7.73 7.88 10.61 8.45 8.21 8.37 5.98 12.67 8.01 5.46 n/a n/a n/a n/a Page 20 Performance of Other Managers June 30, 2012 Qtr YTD IYr 3Yr 5Yr 10Yr ALL CAP EQUITY Advanced Investment Partners - AllCap -Gross Size -1.60 26.67 6.93 17.75 0.88 5.80 BuckhcadCaptial Management -All Cap - Gross Size. -3.84 17.42 1.71 12.87 -1.83 Diamond Hill Capital Management, Inc. - Diamond Hill Select Equity -Gross Size -5.85 16.07 -2.41 13.57 0.70 8.93 HGK Asset Management -All Cap -Gross Size -3.19 22.11 2.80 13.74 -0.61 ICC Capital Management, Inc -Multi -Cap Eq. -Gross Size -8.08 10.55 -8.92 13.32 2.26 8.87 Intrepid Capital Management, Inc. - Intrepid Multi-Cap Equity -Gross Size -2.98 17.61 0.43 15.71 4.83 8.24 Oak Ridge Investments, LLC -All -Cap -Gross Size -4.72 19.29 5.23 16.13 2.77 7.77 Rockwood Capital - Strategic Equity 0.40 24.69 -3.46 17.00 0.94 7.59 Russell 3000 -3.15 22.57 3.84 16.73 0.39 5.81 Dow Jones Wilshire 5000 (Full Cap) -3.14 22.37 3.98 16.66 0.44 6.05 SMALL CAP EQUITY Atlanta Capital Management Co., LLC -High Quality Small Cap -Gross Size -3.20 22.76 3.52 20.87 8.58 10.58 BuckhcadCaptial Management -Small Cap Value -Gross Size -5.53 25.82 -5.21 14.28 -1.82 6.45 Ccrcdcx -Value Ad Small Cap Value -Gross Size -4.44 19.77 -3.91 19.62 3.26 11.28 DcPrincc, Race, Zollo, Inc. - Small Cap Value -Gross Size -3.63 28.35 4.75 18.25 2.67 7.74 Eagle Asset Management -Small Cap Core - Institutional -Gross Size -5.17 19.01 -5.50 16.67 1.18 8.37 GW Capital, Inc. - Small Cap Value Equity -Gross Size -2.02 24.98 -9.64 18.48 1.10 13.23 Intrepid Capital Management,, Inc. - Intrepid Small Cap -Gross Size -1.95 13.21 3.89 16.18 11.30 10.46 Kaync Anderson Rudnick Invst. -Small Cap -Gross Size -2.74 20.59 4.34 23.97 6.79 10.90 Missouri Valley Partners -5.41 32.17 2.68 23.87 3.29 7.20 Rhumblinc Advisers Corporation - S &P 600 Index Fund -Gross Size -3.59 26.36 1.35 19.64 1.86 Sawgrass Asset Management, LLC -Small Cap Growth Equity -Gross Size -5.21 20.81 -3.74 17.95 -1.56 3.10 Silvant Capital -Small Cap Growth -Gross Size -3.41 25.49 -1.97 19.20 1.90 7.31 Russell 2000 -3.47 25.32 -2.08 17.80 0.54 7.00 S &P SmallCap 600 -3.58 26.52 1.43 19.78 1.83 7.91 REAL ESTATE (3/31/2012) American Realty Advisors -Core Equity Real Estate -Sep. Accts. -Gross Size 3.02 5.87 13.44 1.93 -0.43 ASB Capital Management, Inc. - EB Real Estate Fund -Gross Size 3.33 8.85 17.17 6.03 2.35 7.71 Intercontinental - US REIF -Gross Size 2.95 7.39 14.26 5.54 -2.46 JPMorgan Asset Management - Strategic Property Fund -Gross Size 2.72 5.85 15.09 4.89 0.64 7.36 Principal Global Investors -Real Estate Core Property -Gross Size 2.71 5.24 16.08 3.36 -1.12 5.81 Dow Jones Wilshire REIT Index 10.79 27.88 13.40 44.70 -0.66 10.42 NCREIF Property Index 2.59 5.63 13.41 5.96 2.88 8.17 INTERNATIONAL EQUITY Altrinsic Global Advisors - International Equity -Gross Size -7.80 4.49 -13.02 6.74 -3.31 6.68 DcPrincc, Race, Zollo, Inc. - International Equity -Gross Size -7.85 5.58 -18.08 6.84 -4.05 6.23 Harding Locvncr - International Equity -Gross Size -5.98 10.92 -9.66 13.21 0.97 8.02 ICC Capital Management,, Inc - International ADR Equity -Gross Size -8.03 10.04 -10.86 8.18 -3.93 5.37 INVESCO - International EM Equity -Gross Size -10.29 5.48 -21.82 7.25 -0.42 The Boston Company Asset Mgmt., LLC - International Core Equity Management -6.59 9.92 -13.08 8.06 -7.43 6.48 Thornburg Investment Mgmt. - International Equity -Gross Size -6.62 8.87 -13.71 8.32 -1.82 9.14 Wentworth,, Hauser and Violich - VVHV International Equity -Gross Size -6.12 14.58 -14.74 10.62 -0.37 12.59 MSCI EAFE -6.85 6.87 -13.38 6.45 -5.63 5.62 MSCI EMERGING MARKETS -8.78 8.75 -15.68 10.10 0.21 14.42 Rhumblinc Largc Cap(FYE) -2.74 22.44 5.51 16.42 0.43 5.46 Rhumblinc Mid Cap(FYE) -4.90 22.31 -1.94 19.53 2.76 n/n Rhumblinc Small Cqp(FYE) -3.60 26.49 1.46 19.67 1.88 n/a International Equi y(FYE) -7.00 11.60 -11.78 9.14 3#%-/L-., n/a ICC Large Growth(FYE) -5.76 20.99 -3.26 15.86 n /a n/a loci hbtlp Awt multing Page 21 Performance of Other Managers June 30, 2012 Qtr YTD I Yr 3Yr 5Yr 10Yr CORE FIXED INCOME Denver Investment Advisors -Core Bond Gov't /Corp. -Gross Size 2.45 4.07 8.47 7.61 7.17 6.23 Eagle Asset Management -Core Fixed Institutional -Gross Size 2.14 3.64 8.36 7.50 7.26 5.74 Garcia Hamilton & Associates -Fixed Aggregate -Gross Size 2.19 6.77 7.85 8.73 8.86 6.89 ICC Capital Management, Inc -Core Fixed Income -Gross Size 2.04 3.92 8.50 6.86 6.31 5.20 Sawgrass Asset Management, LLC -Core Fixed Income -Gross Size 2.13 4.48 7.40 7.08 7.41 5.99 RBC Global Asset Management, Inc. -Broad Market Core -Gross Size 1.97 4.25 7.48 7.92 6.22 5.38 Rockwood Capital - Aggregate Bond -Gross Size 1.66 3.38 7.95 7.60 6.96 5.32 Barclays Aggregate Bond 2.06 3.52 7.47 6.93 6.80 5.63 Barclays Gov /Credit Bond 2.56 3.86 8.78 7.34 6.90 5.79 Barclays High Yield US Corporate Bond 1.83 14.20 7.27 16.29 8.45 10.17 INTERMEDIATE FIXED INCOME Buckhead Capital Management - Intermediate Fixed -Gross Size 1.27 3.57 5.25 5.50 6.53 Denver Investment Advisors - Intermediate Fixed -Gross Size 1.50 3.94 6.08 6.68 6.47 5.63 Eagle Asset Management - Institutional Conservative -Gross Size 1.48 3.32 6.45 6.28 6.88 5.32 Garcia Hamilton & Associates - Intermediate Fixed Income -Gross Size 1.53 6.27 5.81 7.65 7.81 6.15 Missouri Valley Partners - Intermediate Government /Credit Fixed Income -Gross Size 1.57 2.96 6.01 6.18 7.02 5.56 Sawgrass Asset Management, LLC - Intermediate Fixed Income -Gross Size 2.04 4.37 6.33 5.91 6.48 5.24 Sit Investment Associates, Inc. - Intermediate Govt /Corp -Gross Size 1.66 4.35 5.79 9.47 7.23 5.88 RBC Global Asset Management, Inc. - Intermediate Core -Gross Size 1.37 3.29 5.31 6.62 5.10 4.72 Barclays Gov /Credit - Intermediate 1.48 2.96 5.42 5.81 6.02 5.08 INTERNATIONAL FIXED INCOME Brandywine Global - International Fixed Invst. Grade -Gross Size 0.67 7.17 5.77 8.30 7.94 8.99 Federated Investors - Non -US Fixed Income Unhedged -Gross Size 0.26 0.39 -0.05 5.72 8.00 7.63 PIMCO -Non US Fixed Income Unhedged -Gross Size 1.13 2.80 4.67 11.64 10.31 8.89 Wells Capital Mgmt. - Global Fixed Income Ex -US -Gross Size 1.03 0.63 0.25 7.38 8.75 9.09 Citigroup World Government Ex -US 0.19 -0.50 0.44 5.13 7.39 7.15 International Bonds(FYE) 0.37 2.65 -0.04 n/a n /a n/a ICC Fixed Income(FYE) 2.15 3.67 8.48 7.10 6.67 5.28 �i LliisfleA5set�o��sulfiit� Page 22 �! i SALE TRU S T C O M P A N Y CLASS ACTION INFORMATION FOR PERIOD 04/01/12 through 06/30/12 Class actions due during the period indicated above: Beckman Coulter, Inc. CardioNet Inc. Northfield Laboratories, Inc. Apollo Group, Inc. Lehman Brothers Equity /Debt Securities Litigation Motorola Carter's Inc. Pilgrim's Pride Corporation Arthocare Corporation ** This list reflects all class actions received or filed by Salem Trust Company for those clients who met the specific class action parameters. This list is not account specific. Please see separate report for class actions filed on behalf of your plan. 0 SALEMTRUST C o M V A N X CLASS ACTION INFORMATION FOR PALM BEACH GARDENS POLICE PENSION FUND PERIOD 04/01/12 through 06/30/12 Class actions filed on behalf of the plan during the period indicated: None The plan received the following class action settlements for the period indicated: None 7.19.12 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM BEACH GARDENS, FLORIDA, AMENDING CHAPTER 50, ARTICLE III OF THE CODE OF THE CITY OF PALM BEACH GARDENS, FLORIDA, ENTITLED "POLICE OFFICERS' RETIREMENT TRUST FUND", IMPLEMENTING THE CITY COUNCIL'S ACTION RESOLVING THE IMPASSE IN COLLECTIVE BARGAINING NEGOTIATIONS BETWEEN THE CITY OF PALM BEACH GARDENS AND THE PALM BEACH COUNTY POLICE BENEVOLENT ASSOCIATION; AMENDING SECTION 50 -61, DEFINITIONS; REVISING THE DEFINITION OF "SALARY "; AMENDING SECTION 50 -116, REVISING THE NORMAL RETIREMENT DATE AND BENEFIT; AMENDING 50- 135 REVISING THE COST OF LIVING ADJUSTMENT; PROVIDING AN EFFECTIVE DATE; AND REPEALING ALL ORDINANCES INCONSISTENT HEREWITH. WHEREAS, the City Council recently took final action to resolve the impasse in collective bargaining negotiations between the City and the Palm Beach County Police Benevolent Association; and WHEREAS, one of the issues at impasse invtt certain changes to pension benefits for members of the City of Palm Beach Gardens Police Officers' Retirement Trust Fund; and to implement the City Council's action it is necessary to amend the Police Trust Fund ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF COUNCIL OF THE CITY OF PALM BEACH GARDENS: SECTION 1. That the recitals and findings contained in the Preamble of this Ordinance are adopted by reference and incorporated as if fully set forth in this Section. 00103666 -1 1 7.19.12 SECTION 2. That Section 50 -61 of the "Code of Ordinances, City of Palm Beach Gardens, Florida" pertaining to "Police Officers' Retirement Trust Fund" is hereby amended to read as follows: Sec. 50 -61. - Definitions. Salary means the average monthly earnings reported to the Internal Revenue Service for income tax purposes, plus deferred compensation. Beginning with salary after December 31, 2008, and pursuant to Internal Revenue Code Section 414(u)(7), the definition of salary includes amounts paid by the city as differential wages to members who are absent from employment while in qualified military service. Notwithstanding the preceding two sentences, effective on the effective date of this ordinance, salary means base paL excluding all other compensation; provided, the salary of any member employed on the effective date of this ordinance shall include Davment for unused accrued sick and annual leave uD Ww.,3he,dollar amount of unused sick and annual leave accrued on the effective date of this ordinance. In rip event, however, shall the salary of any member who is employed on the effective date of this ordinance be less than the member's salary on the day before the effective date. determined in accordance with the definition of salary in effect on that date. SECTION 3. That Section 50 -116 of the "Code of Ordinances, City of Palm Beach Gardens, Florida" pertaining to "Police Officers' Retirement Trust Fund" is hereby amended to read as follows: Sec. 50 -116. — Normal Retirement. 00103666 -1 2 7.19.12 (a) Date. A member's normal retirement date shall be upon the attainment of age 52, provided the officer has at least ten years of service, or upon completion of 20 years of service, regardless of age. Notwithstanding the preceding sentence, for police officers with less than ten vears of creditable service on the effective date of this ordinance, and police officers hired on or after that date, the normal retirement date shall be upon the attainment of age 59 and at least ten years of creditable service. (b) Benefit. The monthly amount of normal retirement benefit payable to a police officer who retires on the normal retirement date shall be an amount equal to 3.5 percent multiplied by the number of years of credited service, up to a maximum of 100 percent, multiplied by average monthly earnings. Notwithstanding the preceding sentence, for police officers who are employed and have not attained the normal retirement date on the effective date of this ordinance, the monthly amount of normal retirement benefit payable to a police officer who retires on or after the normal retirement date shall be an amount equal to 3.5 percent multiplied by the number of _years of credited service prior to the effective date of this ordinance, plus 2.75 percent the number of vears of credited service on and after the effective date of average monthly earnings; and for police officers hired on or after the effective date of this ordinance the monthly amount of normal retirement benefit payable to a police officer who retires on or after the normal retirement date shall be an amount eaual to 2.75 percent multiplied by the number of years of credited service, up to a maximum of 75 percent, multiplied by the police officer's average monthly earnings. In no event will the benefit paid be less than 2 percent per year of service. 00103666 -1 3 7.19.12 SECTION 4. That Section 50 -135 of the "Code of Ordinances, City of Palm Beach Gardens, Florida" pertaining to "Police Officers' Retirement Trust Fund" is hereby amended to read as follows: See. 50 -135. Annual adjustments. (a) Subject to the conditions set forth in this section, the board of trustees shall annually authorize an annual adjustment, the amount of which shall be determined as of each September 30. The amount of the annual adjustment shall be equal to the actuarial present value of future pension payments to current pensioners multiplied by the positive difference, if any, between the pension fund assets during the 12 -month period ending each September 30. The rate determined shall be the rate reported in the most recent actuarial report submitted pursuant to part VII of chapter 112, Florida Statutes. (2) The actuary for the pension fund shall, as of September 30, determine the actuarial present value of future pension payments to current pensioners. The actuarial present values shall be calculated using an interest rate of 8.5 percent a year compounded annually, and a mortality table approved by the board of trustees and as used in the most recent actuarial report submitted pursuant to part VII of chapter 112, Florida Statutes. This will be the pool of funds available to fund the annual adjustment. 00103666 -1 4 7.19.12 (3) If the actuary determines there may be an annual adjustment, the board of trustees shall authorize such an adjustment unless the administrative expenses of distribution exceed the amount available for the distribution. (b) Annual adjustments shall be made to all pensioners who have been retired for at least one year on the distribution date. Annual adjustments will be paid to beneficiaries who are receiving monthly benefits, provided the retiree (or the retiree and the..l3enet"t combined) was in receipt of a pension benefit for at least one year on the distribution date. (c) The annual adjustment will be made as a percentage of the benefit and the percentage will be the same for all recipients. The amount of the percentage increase will be determined by the fund's actuary in accordance with the above procedure. The percentage increase will be equal to the amount that can be fully funded by the pool of funds available but not to exceed 4 percent in any year and determined by that procedure. If the pool of funds available is greater than 4 b percent in any given year, then the remainder will be placed in an annual adjustment reserve designated for future annual adjustment distributions. (d) The annual adjustments shall be made as of July 1 and each July 1 thereafter, provided a person was retired for at least one year on July 1. (e) Notwithstanding the provisions in paragraphs (a) -(d) above, for police officers who are employed and have not reached the normal retirement date on the effective date of this ordinance, there shall be no cost of living adjustment applied to benefits earned based on creditable service on and after that date; and for police officers hired on or after the effective date of this ordinance, there shall be no cost of living adjustment. SECTION 5. Ordinances in conflict herewith are hereby repealed to the extent of such conflict. 00103666 -1 5 7.19.12 SECTION 6. Should any section, sentence, clause, part or provision of this Ordinance be declared invalid or unenforceable by a court of competent jurisdiction, the same shall not affect the validity of this Ordinance as a whole, or any part thereof other than the part declared to be invalid. SECTION 7. This ordinance shall take effect immediately upon second reading. PASSED on second reading and final] ATTEST: , 2012. CITY OF P f A Mayor City Clerk 00103666 -1 6 Jay of ►RIDA 4444;4 444444 44U444 �.4� 444>44444 44>4444y